TRADE finance gaps are a persistent feature of the global trade landscape, says a recent survey released by the Asian Development Bank.
In its trade finance gap, growth, and jobs survey 2013, which was released last month, ADB said gaps existed and the populations which were most impacted varied because of temporally and geographically reasons.
“The main findings of the 2013 trade finance gap survey are that significant market gaps for trade finance persist even as the global economy has recovered,” ADB said.
“Unintended consequences surrounding financial crimes regulation and a lack of awareness among companies of trade finance options are major contributors to trade finance gaps.
“Compared with 2012, companies and financial institutions perceive that more trade finance is available in the market, particularly to larger firms.”
In 2013, ADB and partner organisations surveyed financial service providers and companies involved in international trade about their use of trade finance.
This was ADB’s second effort to quantify the adequacy of global trade finance and its impact on economic growth and job creation.
“An earlier survey in 2012 provided evidence that trade finance gaps, which had widened with the global financial crisis — continued to negatively impact growth and job creation. The 2013 survey sought to go further in understanding recent trends in risk management, financial sector innovation, and contributing factors to trade finance gaps.”