As we come to grips with the Covid-19 pandemic, supply chains across the globe are under immense pressure. An unprecedented demand for supplies from supermarkets is offset by a demand slump from restaurants, cafes, hotels and bars that have been forced to shut their doors. This disruption will create new challenges for transaction bankers and may lead to long-term changes in global trade patterns.
“Filling in gaps in the supply chain, however, will come with new risks. Banks will need to weigh up the overall cost of this risk exposure in serving their clients, especially small and medium-sized enterprises”, says Joon Kim, Global Head of Trade Finance Product and Portfolio Management at BNY Mellon.
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