The estimated trade finance gap stands at US$1.6t.
The International Chamber of Commerce (ICC) Banking Commission has released its 2017 report entitled “Rethinking Trade and Finance”. Based on the Global Survey on Trade Finance – with 255 responses from banks located in 98 countries, as well as insight and commentary from expert contributors – the report is the most comprehensive gauge of the trends and outlook of the global trade finance industry.
Now in its ninth year – 2017’s Survey marks a significant change in both emphasis and presentation. The aim is to provide both enhanced context – highlighting the potential strategic and tactical implications for the industry – and to be more forward looking. The approach is aided by the launch of the new Editorial Board comprising senior specialists and practitioners, supported through contributions from a wider range of partners across global trade.
The Report – emphasising ICC’s and the Banking Commission’s support of open, rules-based and inclusive multilateral trade – encompasses four major sections of content linked to the pillars of the Banking Commission’s strategy. It focuses on the state of the trade finance market; trade and supply chain finance; policy, advocacy and inclusiveness around global trade; and digitalisation and the state of FinTech. The 2017 Survey’s findings show that:
John Danilovich, ICC Secretary General, said of the Survey: “Results of the survey underscore the chronic shortfall of trade finance for small business – as recently recognised by the United Nations. Addressing the trade finance gap must be a central priority for the G20 to deliver on its commitment to support inclusive growth and enhanced job creation.”
Daniel Schmand, Chair of ICC Banking Commission, added: “Championing trade and ensuring access to adequate levels of financing for SMEs is more critical now than ever before. Free trade generates economic growth and jobs across the world, while also maintaining a consistently low risk profile across products. Taken together, these factors make trade stand out as one of relatively few areas capable of producing positive a global impact through effective policy measures and private sector business initiatives.”
Alexander Malaket, Chair of ICC Banking Commission Market Intelligence, said: “ICC’s and the Banking Commission’s championing of open, rules-based and inclusive "multilateral trade is supported by the Report, which now includes the explicit intent to provide editorial context and to be forward looking. Thanks to the dedicated work of our Editorial Board, the latest edition of the Report builds on our strong tradition of quality analysis, global collaboration and effective advocacy in support of international trade and trade financing.”
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