Trade finance bounces back, but supply chain resilience remains a challenge
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Treasury

Trade finance bounces back, but supply chain resilience remains a challenge

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In a momentous year for the industry, the top tier of trade finance banks remained remarkably stable in this year’s Trade Finance Survey. Supply chain disruption will continue to bedevil the sector and liquidity provision together with digital innovation will place sizeable demands on trade finance banks in 2022.

RESULTS

  • The survey is designed to give our readers valuable information on the global trade finance market and the opportunity to rank trade finance providers across a selection of categories and an overall global ranking of providers as rated by their clients.

The most recent Coalition index for transaction banking shows that trade finance grew in line with the recovery in overall trade during the first half of 2021. This meant that trade finance revenues actually enjoyed one of their biggest increases since the beginning of 2015. It was the result of a strong recovery in trade volumes from the pandemic-subdued activity in 2020.

In structured trade finance, a rise in commodity prices and trade volumes led to improved commodities trade finance and export finance performance. Supply chain finance volumes also grew.

Traditional financial institutions have played a key role in trade finance advisory and enablement, especially in terms of paperless trade and other forms of digitalization, as well as funding and risk management requirements through clients’ supply chains.

Elsewhere,


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Paul Golden
Paul has written about finance since the early 2000s, with a particular emphasis on foreign exchange, treasury and wealth management. He is a regular contributor to several industry titles in addition to Euromoney.
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