Supply chain finance is becoming more important to banks and trade finance is becoming increasingly available, according to a survey.
The ICC Global Trade and Finance Survey 2014 studied data from 298 banks in 127 countries, and 68 per cent cited a rise in the availability of trade finance in 2013, although most of these said it was a minor change.
80 per cent said that trade finance pricing has either fallen or stayed the same.
However, concerns over the cost and complexity of regulations have led nearly two in five banks to close correspondent account relationships.
This particularly affected SMEs, which sometimes lack the resources to ensure compliance, meaning banks cannot complete the required processes.
Chair of the ICC Banking Commission Kah Chye Tan said: “This study has reached a higher level of participation than ever before, and its broad geographical reach enhances the richness of the data collected.
“As such, we trust that the impact of the results on trade finance regulation, and the subsequent change it triggers, will be the most significant to date.”
For more on the report, see the ICC website.
