EBF supports the ICC trade register – PRESS RELEASE
“EBF strongly believes that the ICC Trade Register is and will be inevitable for the future discussion with the regulators.”
BRUSSELS, 10 July 2017 – The European Banking Federation would like to express its support to the International Chamber of Commerce’s Trade Register activity to underpin a data-based objective dialogue between regulatory authorities around the world and finance practitioners active in expert and import.
In order to manage ‘Trade & Export Finance’ as a product effectively, banks need to understand the full risk profile by considering specific aspects relating to countries, currencies, counterparties, deliveries and credit risks of their business, as well as the regulatory and strategic implications. Trade & Export Finance is by nature a low risk profile business which supports export-oriented corporates, including small and medium-sized enterprises. It helps to safeguard employment in a volatile global environment. But to provide evidence on the beneficial impact of Trade & Export Finance empirical evidence also is required.
Since its creation in 2009 the ICC Trade Register helps banks achieve this by providing an objective, transparent view of the credit-related risks, defaults and characteristics of Trade & Export Finance using a customized data-driven approach. The medium and long term part of the ICC Trade Register has also made transparent the value of risk mitigation as provided by export credit agencies and the substantial recoveries related to such business. The ICC Trade Register Reports published so far were therefore well received by the regulators and supported the various initiatives to reduce the negative impact of regulation on Trade & Export Finance.
The EBF is aware of some concerns raised regarding the continuation of the ICC Trade Register Project. It may happen that in the future the AnaCredit project can provide similar empirical information to the regulators but meanwhile the ICC Trade Register data date back to 2007 and provide a proven long track record over the crisis cycle. It will take a long time to set up a comparable track record under AnaCredit. Especially for businesses with a medium to long-term focus it will be a challenge to track over a longer period of time recoveries which arrive regularly years after the initial default. EBF strongly believes that the ICC Trade Register is and will be inevitable for the future discussion with the regulators. It is relevant and important to the business of trade, export & supply chain finance, and is central to advocacy efforts, dialogue and deliberations with regulatory authorities around the world.
EBF Mediacentre, +32 2 508 3711, firstname.lastname@example.org
About the EBF:
The European Banking Federation is the voice of the European banking sector, uniting 32 national banking associations in Europe that together represent some 4,500 banks – large and small, wholesale and retail, local and international – employing about 2.1 million people. EBF members represent banks that make available loans to the European economy in excess of €20 trillion and that securely handle more than 400 million payment transactions per day. Launched in 1960, the EBF is committed to creating a single market for financial services in the European Union and to supporting policies that foster economic growth.