January 27, 2012

EU regulators under pressure to amend CRD4

Banks and businesses are calling for EU regulators to amend the proposed new capital requirements.

January 25, 2012

Baft-IFSA elects new board

Financial services group Baft-IFSA elected new members to its 2012-13 board at the group’s global annual meeting in Europe this week.

January 23, 2012

Markets monitor EU ban on Iranian oil exports

EU ministers have agreed to place a ban on new contracts for Iranian exports of crude oil and petroleum products.

January 17, 2012

France's downgrade 'already reflected in the market'

France and Austria have lost their AAA ratings and have been downgraded by Standard & Poor’s to AA +.

January 12, 2012

RBS shake-up sees GTS division restructured

RBS is set to restructure its global transaction services division, which includes trade finance.

January 11, 2012

Viewpoint January 11, 2011

GTR editor Rebecca Spong looks forward to 2012 and asks what kind of New Year resolutions the market should be making.

Time to make resolutions for trade

Optimists are hard to find in the banking world as 2012 begins. There’s heightened job uncertainty, jittery markets and a big question mark over how the eurozone crisis will resolve itself.

But New Year is also a time for resolutions and figuring out a way of improving ourselves.

We at GTR have come up with a number of resolutions for the trade finance market; suggestions that could mean that the industry ends 2012 in a better state than it left 2011.

Regulatory issues: One thing we hear time and time again at conferences and roundtables is the need to inform clients of the impact of Basel III. Banks’ customers will need to understand why they are being charged more for their trade facilities.

Regulators may listen more to the arguments of corporates than the complaints of bankers.

Don’t try to be good at everything: The end of the global banking era was heralded by some last year. Perhaps a slightly over-dramatic stance to take, but there is definitely the need for banks to focus on their strengths and not try to provide every service or product in every region. We often hear warnings that bankers need to do business in regions and with risks they understand.

Ensuring senior management is aware of the relevance of your business: As the cliché goes, trade finance is the oil that keeps the wheels of trade turning. Trade finance is vital for world trade, particularly in the emerging markets. It is also a low risk fee-driven business that will keep generating regular income for your bank, in both the good times and bad.

Price risk correctly: The market itself has to also make efforts to ensure it remains a profitable and respected business. GTR often hears complaints of bankers not pricing deals in a way that actually reflect the risks involved.

Forget preconceived ideas on country risk: Reconsider what you think makes a good risk. The tables have turned in recent years, with growth stagnating in Europe and the US and markets in Brazil and areas of Africa booming.

Is 2012 the year to take a different approach when considering your country limits?

Development and aid: The need to finance deals that support the development of poorer countries might not be a top concern right now as people worry about where the next set of job cuts might happen. However, perhaps there is a way that banks work with multilaterals or development banks in supporting the growth of poverty-stricken nations, while also generating shareholder return?

The reputation of the banking industry has been sullied in recent years – perhaps it is time to demonstrate the social value banks can bring to the world?

The latest data from Dealogic reveals that the final quarter of 2011 saw a significant dip in trade finance activity; no doubt a reflection of the wider market volatility.

However the first nine months saw almost record volumes of trade finance.

The market will need to make efforts to ensure it can return to the success of early 2011 and survive any current turmoil.

What other resolutions should the market make?

Are you feeling optimistic about the outlook for 2012?

January 10, 2012

Africa: Prepared for the worst

Is Africa equipped to deal with the turmoil that continues to encroach upon its financial sector? Members of GTR’s Africa editorial board gather to discuss.

January 10, 2012

Nordic review: Holding the fort

As the Nordic region braces itself for the full force of the European crisis, bankers and corporates debate whether the trade finance industry is prepared for what lies ahead.

January 06, 2012