GTR Magazine - September/October 2009
Converging cash and trade
The movement to bring together cash management and trade finance capabilities is gaining momentum. For banks, it’s a means of improving client relationships. For corporates, it holds the promise of greater control over working capital. GTR brought together heads of trade finance and transaction banking from leading institutions to discuss how the cash and trade concept is being applied.
Leaders in supply chain finance revealed
GTR readers have voted for their favourite trade services and supply chain providers in record numbers this year. Close to 3,000 individual votes were cast across 11 categories. Citi led the way this year, securing first place as the leading bank globally for documentary processing services, as well as the leading trade services bank in North America.
Accelerating supply chain finance
The financial crisis is pushing many corporates towards supply chain finance (SCF) solutions, in order to protect their physical supply chain and optimise their working capital, writes Liz Salecka.
Should corporates turn to multi-bank platforms?
The concept of multi-bank systems for trade finance has taken its time to gain traction in the market. Inevitably, banks have been keen to promote their own online trade finance portals to clients, rather than have to adopt a third party model. Rebecca Spong speaks to three global firms working with multi-bank solutions provider Bolero, and finds that attitudes are beginning to change.
A new currency for trade
This edition’s GTR Asia Market View comes from HSBC. Following the launch of a Chinese government pilot scheme permitting the limited use of renminbi (Rmb) in trade transactions, HSBC has closed the first trade transaction to be settled in Rmb. Chris Lewis, head of trade and supply chain, greater China, at HSBC, looks at the impact of the scheme on trade finance markets.
Asian power financing: All hands to the pump
The financial crisis has mobilised greater volumes of official financing to help Asian markets address their electricity needs, writes Kevin Godier.
On track to South Korea
Despite massive fluctuations in Korean risk pricing over the past year, Lloyds TSB has managed to close a well-priced structured letter of credit and guarantee facility to support UK exports to South Korea. Rebecca Spong reports.
Tajikistan strives for more transparency
After IMF whistleblowers revealed last year that Tajikistan misreported the state of its currency reserves and was forced to repay close to US$47mn in IMF money, the country has been eager to improve its levels of transparency, and increase cooperation with multilaterals. Philip de Leon reports.
South Africa: Weathering the storm
The volume of trade business in South Africa has diminished since the onset of the crisis. But opportunities are emerging for banks to provide structured trade finance, inventory finance and working capital solutions. Shannon Manders reports.
DFIs jostle with banks in South African infrastructure
The South African government’s US$100bn infrastructure investment programme is seen as crucial to help the economy pull out of its first recession in nearly two decades, but who will finance it? Shannon Manders reports.
Trade offers hope of recovery to Golden State
Banks in the West Coast of the US are turning to international trade flows as a key source of revenue, as the domestic market, mired by consumer and state-level debt and plummeting house prices, remains stagnant. Ted Kim reports.
Beirut rising
Buoyed by record profits and wounded competitors, Lebanese banks zero in on trade finance, writes Nicholas Noe.
