Trade Finance News Trends

Trade finance modernization turns towards blockchain

A study of European treasurers by working capital fintech C2FO finds that 75% are focusing on investing in trade finance technology in 2017. Colin Sharp, senior vice-president, EMEA at C2FO, says the shifting macroeconomic environment is pressuring corporates to refocus their efforts on trade finance: “Treasurers are facing a lot of uncertainty, both from the US and around Brexit. This is putting stress on the supply chain, with demand increasing and decreasing. Treasures want the ability to use their assets to make returns and give some certainty.

Source:https://www.euromoney.com/article/b12khnzp4pq9p5/trade-finance-modernization-turns-towards-blockchain

ICC Academy unveils new e-course on digital trade finance and fintechs

The educational arm of the International Chamber of Commerce (ICC), the ICC Academy, has launched an advanced-level e-course entitled “Digital Trade Finance and Fintechs.” The curriculum is aimed at professionals working in banks, corporations, financial institutions, insurance companies and financial technology (fintech) firms.

Source: https://iccwbo.org/media-wall/news-speeches/icc-academy-unveils-new-e-course-digital-trade-finance-fintechs/

Targeting Seamless Trade Finance Operations

As Nigerians look forward to better days when the economy would have stabilised and emerged from recession, integrated digital payments company, Interswitch Group, has struck a deal with Misys, a leading provider of lending, treasury, trading and risk management solutions to ease trade finance operations and improve service delivery as far as local banks are concerned.

Source: https://www.thisdaylive.com/index.php/2017/06/22/targeting-seamless-trade-finance-operations/

SBI cautious in India but looking to increase corporate lending in Europe

State Bank of India is trying to increase corporate lending in Europe. SBI Frankfurt, which has the status of an independent bank in Europe, has traditionally lent for trade financing but now wants to fund Indian business houses in Europe and European firms in India.

In the recent past, there has been a conscious shift in strategy to lend more to European companies, according to an executive with SBI Frankfurt. Now nearly 50 per cent of the bank’s non-trade finance business portfolio consists of syndicated loans to European companies. SBI Frankfurt’s growth in business over the next few years would come from lending to European firms, confirmed another bank executive.

Source: http://www.business-standard.com/article/finance/sbi-cautious-in-india-but-looking-to-increase-corporate-lending-in-europe-117061700260_1.html

 

Maersk now offering trade finance operation for customers

Danish liner company Maersk Line has expanded into the trade finance business by allowing customers to finance their operations as long as they are shipping with Maersk.

The financing scheme works because Maersk has a rich trove of customer information from which to base a decision on the customer’s creditworthiness, according to the Copenhagen-based company. This enables companies to manage their shipping and finance needs with one provider, rather than using one vendor for shipping and another vendor—normally a bank—for trade finance, Maersk said.

http://www.freshplaza.com/article/177338/Maersk-now-offering-trade-finance-operation-for-customers

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

Trade and Commodity Finance News Trend Around the World

 ICC Banking Commission launches working group on digitalisation of trade finance
The ICC Banking Commission has launched a working group to coordinate all work relating to the digitalisation of trade finance. The group aims to help the trade finance industry accelerate its progress towards greater digitalisation.

The trade finance industry is undergoing a massive transformation – from time-consuming and cumbersome manual processes involving paper-based instruments such as Letters of Credit to an automated and digitised future.

Source: https://iccwbo.org/media-wall/news-speeches/icc-banking-commission-launches-working-group-digitalisation-trade-finance/

Maersk ventures into trade finance
To make overseas exports easier for Indian companies, especially SMEs, Denmark-based AP Moller – Maersk, one of the largest container shipping companies globally, has set up a new business vertical, Maersk Trade Finance.

In a nutshell, Maersk Trade Finance is a digital platform with pre-shipment and post shipment credit facilities. It enables exporters – manufacturers or traders – to not only get the cargo shipping services online but also apply for funds that can be used either to pay for the shipment or to invest in new orders

Source: http://www.thehindubusinessline.com/economy/logistics/maersk/article9717910.ece

International Chamber of Commerce calls for UN action to address S$1.6 trillion trade finance gap in SMEs globally
The International Chamber of Commerce (ICC) has called for action from United Nations to address the US$1.6 trillion trade finance gap in the Small and Medium Enterprise (SME) sector globally.

Highlighting that short-term financing is an essential tool to support small business growth and sustainability, ICC said yet a growing trade finance shortfall hurts companies and countries that need it the most.

World trade relies heavily on reliable sources of financing—both long-term (for capital investments) and short-term. The latter—commonly referred to as “trade finance”—is the basis on which a significant proportion of world trade operates.

Source: http://knnindia.co.in/news/newsdetails/global/international-chamber-of-commerce-calls-for-un-action-to-address-s16-trillion-trade-finance-gap-in-smes-globally

Belarusbank seals deal with EDB on $40m loan for trade financing
The Eurasian Development Bank (EDB) and ASB Belarusbank signed an agreement on financing foreign trade operations of Belarusbank clients in the EDB member states, BelTA learned from the EDB official website. The relevant agreement was signed by EDB Managing Director for Assets and Liabilities Dmitry Ladikov-Royev and ASB Belarusbank Executive Director Viktor Perepelitsa, the post on the website reads.

http://eng.belta.by/economics/view/belarusbank-seals-deal-with-edb-on-40m-loan-for-trade-financing-102073-2017/

Chinese Banks Pained By Shifting Position In Global Trade Finance
China’s corporate banking sector is getting hit with a bit of a setback as more companies look outside China for supply chain financing.

New research from East and Partners, released this week, discovered that CFOs the world over are changing their supply  chain financing practices as they plan to reduce the number of banks from which they access this type of financing. Currently, companies surveyed use an average of 14 supply chain financing banks, researchers said.

Source: http://www.pymnts.com/news/2017/china-corporate-banking-supply-chain-trade-finance/

ADB seals first trade finance deal in Fiji
The Asian Development Bank (ADB) has signed its first trade finance deals in Fiji, with two agreements with the Home Finance Company (HFC Bank).

A revolving credit facility and a credit guarantee facility are worth a combined US$4mn and will help HFC support local exporters in key areas such as sugar, copra and other agricultural goods.

http://www.gtreview.com/news/asia/adb-seals-first-trade-finance-deal-in-fiji/

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd