The International Chamber of Commerce (ICC) estimates a possible US$ 5 trillion of trade credit will be needed to enable a rapid recovery from the COVID-19 crisis. In turn, ICC warns in a new paper that proactive government interventions will be needed to ensure the market can power an economic rebound in the wake of the COVID-19 crisis.
The International Chamber of Commerce (ICC) has released its 2019 Trade Register Report, revealing COVID-19’s potential to disrupt global trade, while also highlighting the low-risk nature of trade finance.
The 2019 report captures a full decade of trade finance-related data – containing nearly US$ 16 trillion of exposures from 32 million transactions across six products and 25 banks worldwide. Results indicate that default rates for trade finance products from 2008-2018 are low across all products and regions.
The report also features a number of topical contributions and commentary on global trade from leading experts – including a comprehensive analysis of COVID-19’s impact on global trade.
Read the full report here.
Writing for Global Trade Magazine, Olivier Paul – Director, Finance for Development at the International Chamber of Commerce – explains how, in the wake of the financial crisis of 2007, regulation and compliance requirements have had the unintended consequence of negatively impacting trade finance provision.
While significant work has already been done to promote the fair treatment of trade finance within banking regulations, regulations will not adapt unless all stakeholders voice their concerns.
Read the full article here.
Writing for Trade Finance Global, Olivier Paul, Director, Finance for Development at the International Chamber of Commerce, explains how many challenges to the adoption of trade finance products still remain – such as the unintended impact of regulation and the growing cost of compliance – despite the growth in global trade flows to a new peak of US$18.5 trillion in 2018.
Market participants must work together, Paul argues, to help alleviate any unintended obstacles to the provision trade finance, especially to smaller businesses and those in emerging markets most likely to be affected by the existing US$1.5 trillion trade finance gap.
Read the full article here.
Writing for Banker Middle East, Olivier Paul, Director, Finance for Development, ICC, outlines how industry-led advocacy is necessary for the fair regulatory treatment of trade finance, both in the Middle East and globally.
Paul explains that, “achieving fair treatment of trade finance across regulatory frameworks will, in turn, allow for increased access to trade finance for MSMEs”.
Read the full article here, in the November 2019 issue of Banker Middle East, on p60-63.
Writing in TXF, Olivier Paul, Director, Finance for Development at the International Chamber of Commerce (ICC), explains how the need to comply with mounting regulation and compliance requirements has led to unintended consequences for trade finance.
In turn, it is up to the industry, led by organisations such as ICC, to advocate for appropriate and fair treatment of trade finance within banking regulation.
Read the ICC’s latest report on the topic, Banking regulation and the campaign to mitigate the unintended consequences for trade finance: a milestone report.
Read the full article on TXF here.
The International Chamber of Commerce (ICC) Banking Commission, part of the ICC’s Finance for Development Hub, has released its 2018 Trade Register report – again highlighting the low risk nature of trade finance in comparison to other asset classes.
Results indicate that default rates from 2008-2018 are low across all products and regions, averaging 0.37% for Import Letters of Credit (L/Cs), 0.05% for Export L/Cs, 0.76% for Loans for Import/Export, and 0.47% for Performance Guarantees (when weighted by obligors).
This year’s data set also includes non-OECD Export Credit Agency-backed export finance and, given its growing and now longstanding significance across all markets, supply chain finance (SCF).
To access the report, please click here.
Olivier Paul, Director, Finance for Development at the International Chamber of Commerce (ICC), features in Trade Finance Global’s latest Trade Finance Talks podcast, to discuss the unintended consequences of regulation on trade finance.
Following the release of an ICC report on the topic, the podcast elaborated on the key steps to ensuring that regulation does not hinder the provision of trade finance, including the growing importance of digitalisation.
To listen to the podcast, please click here.
The Global Supply Chain Finance Forum – an initiative comprising the ICC Banking Commission, BAFT, EBA, FCI and ITFA – has appointed Christian Hausherr, European Product Head of Supply Chain Finance at Deutsche Bank, as its Chair.
The GSCFF was established in 2014 to develop, publish and champion a set of commonly agreed standard market definitions for Supply Chain Finance. In turn, Hausherr – as a recognised expert in the field of SCF – has taken a leading role in the drafting of the GSCFF’s Standard Definitions for Techniques of Supply Chain Finance, as well as the Wolfsberg/ICC/BAFT Trade Finance Principles.
The International Chamber of Commerce Banking Commission has partnered with Global Credit Data (GCD), in order to strengthen analysis within the ICC Trade Register, the banking industry’s leading source for risks in global trade and export finance.
The ICC Trade Register, established in 2011, is one of the few comprehensive sources to provide an objective and transparent view of the credit risk profile and characteristics of trade and export finance. In turn, GCD will now oversee the collection of credit-related data from ICC Trade Register member banks, in order to help provide more granular data and detailed benchmarking reports to members