The World Trade Organization estimates that 80 to 90% of global trade is reliant on this method of financing. The overriding question for trade finance is where to get funding from. Recently a $1 billion bilateral trade contract between the US and China was dropped due to a lack of finance. Due to level of funding trade finance will need, many banks’ balance sheets will need readjusting: the conference will look at the type of funding trade finance needs. Linked to this, securitisation has been looked at as an alternative source of funding.
The conference will also look at the global perspective of Basel III, and holistic management risks across different financing lines – trade, supply and commodity finance being the main ones. It will be interesting to look at the different risks that these separate areas are facing, how to manage them individually and to even question if there is a holistic cross-sector plan that can be applied. The conference needs to look at the different types of risks that trade finance faces, including KYC, financial crime, sanction and credit risk.