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ICC Release 2018 Trade Register Report

11/06/2019

The International Chamber of Commerce (ICC) Banking Commission has released its 2018 Trade Register report – again highlighting the low risk nature of trade finance in comparison to other asset classes.

- In 2018, global trade reached a new peak of US$18.5 trillion, underpinning a trade finance revenue pool of US$48 billion.

- ICC Trade Register data confirms default rates from 2008-2018 are low across all products and regions surveyed.

- For the first time, payables finance and non-OECD Export Credit Agency-backed export finance products are included in the Trade Register.

This report captures a full decade of trade finance-related data – containing over US$12 trillion of exposures from 24 million transactions across six products and 25 banks worldwide.

Results indicate that default rates from 2008-2018 are low across all products and regions, averaging 0.37% for Import Letters of Credit (L/Cs), 0.05% for Export L/Cs, 0.76% for Loans for Import/Export, and 0.47% for Performance Guarantees (when weighted by obligors). The results extend the decline in risk seen in 2016 into 2017, likely driven by strong GDP growth and the general de-risking approach taken by banks with regards to their balance sheets.

The report can be accessed here ICC Trade Register Report 2018.pdf


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We, as issuing bank, issued a credit available with any bank by negotiation at sight with the following clauses in field 78: +T/T reimbursement allowed +Our bank will pay the amount within 4 working days following the day of our receipt of reimbursement claim by SWIFT and email copies of documents from the negotiating bank certifying that the documents presented are fully complied with the terms and conditions of our credit. The claiming SWIFT has also to give the following details : shipment date, B/L NO., shipment quantity, description of goods, the courier service name and the relative courier service number. The negotiating bank must send the full set of documents by courier service to us the same day of your sending us the reimbursement claim. The negotiating bank must email the full set of documents with the covering schedule to the issuing bank email address :xxx@sina.com the same day of reimbursement claim. Question: According to the A/M clauses, which view is correct and why? View 1: when the issuing bank receives the copy of documents sent by email, the issuing bank should check the copy of documents. If they find them discrepant, the issuing bank should send advice of refusal to the negotiating bank. (In other words, the credit allows the presentation of documents by email and by T/T reimbursement claim?) View 2: ONLY when the issuing bank receives the full set of ORIGINAL set of documents by courier, the issuing bank will begin to check the documents. If they find them discrepant, the issuing bank should send advice of refusal to the negotiating bank.