Though there are serious threats to global trade from potential trade wars, it continues to flow. Like clean drinking water, trade and the trade finance that secures it, are crucial to the health of the global economy and to that of individual nations. How can trade and trade finance be nurtured, especially in the face of costs and tensions that threaten to turn off the tap?
Global trade growth depends on trade finance, which is not meeting demand. Regulatory compliance, protectionism, costs and complexities of technology have restricted banks’ willingness to provide trade finance. Measures such as collaboration, innovation, improved attitudes are a must if this fuel for the global trade engine is to be adequately supplied.
There is much rhetoric around the opportunities provided by emerging markets. And there is plenty of discourse around the fact that banks are de-risking and retreating from such areas. The fact of the matter is that some regions of the world are riskier to operate in.