ebf conference banks for growth the challenge of f inancing business financing international trade n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Henri d‘Ambrières – Acting Head – EBF Export Credit Group Brussels , 20 M arch 2013 PowerPoint Presentation
Download Presentation
Henri d‘Ambrières – Acting Head – EBF Export Credit Group Brussels , 20 M arch 2013

Loading in 2 Seconds...

play fullscreen
1 / 8

Henri d‘Ambrières – Acting Head – EBF Export Credit Group Brussels , 20 M arch 2013 - PowerPoint PPT Presentation


  • 55 Views
  • Uploaded on

EBF Conference : Banks for Growth The challenge of f inancing business Financing International Trade. Henri d‘Ambrières – Acting Head – EBF Export Credit Group Brussels , 20 M arch 2013. 1. 1. Agenda. International Trade and its financing

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Henri d‘Ambrières – Acting Head – EBF Export Credit Group Brussels , 20 M arch 2013' - branxton


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
ebf conference banks for growth the challenge of f inancing business financing international trade
EBF Conference : Banks for Growth

The challenge of financing business

Financing International Trade

Henri d‘Ambrières – Acting Head – EBF Export Credit Group

Brussels, 20 March 2013

1

1

agenda
Agenda

International Trade and its financing

Is there a place for new players ?

Any risk ?

A new landscape ?

2

2

2

1 international trade and its financing
1. International Trade and its financing

The importance of International Trade for global growth

WWD GDP 2011 $ 67,509 bn (IMF) Growth 2005-11 2.3% / year

WWD Exports 2011 $ 21,986 bn (WTO)

WWD Export of Goods $ 17,816 bn Growth 2005-11 3.7% / year

WWD Export of Services $ 4,170 bn

The importance of the financial tools for international trade

WTO : 80% of International Trade backed by a Financing Instrument

2009. GDP –2.8% but Export –12.1% /clear link with the financial crisis

Berne Union - (Insurance for International Trade) - Production 2011

Short Term $ 1,492 bn Growth 2005-11 10.4% / year

Medium & Long Term $ 191 bn Growth 2005-11 10.5% / year

3

3

3

2 is there a place for new players
2. Is there a place for new players ?

Short-term Trade :

Aflow business with many transactions / limited individual amounts

Unfunded products : Guarantees / Letters of Credit

Possible newcomers

Insurance companies for Guarantees

Banks from Emerging Markets for Guarantees and LC’s

Funded Trade Products : Discounted LC’s / Forfaiting / BPOs

Possible newcomers

Refinancers attracted by low risk and short-term assets

Banks from Emerging Markets

Obstacles

Investments required in Back-Offices to deal with large numbers of transactions

Financial and non-financial regulations (Basel III, KYC,…)

Lack of knowledge, education, liquidity,,, + variety of underlying assets,…

4

4

4

4

2 is there a place for new players1
2. Is there a place for new players ?

Medium and Long Term Export Credits

Mostly large deals with long durations

(2 to 5 years construction + 8 to 15 years repayment)

Alongside commercial banks, a possible role for public banks and institutions with long-term resources (pension funds, insurers,…)

Possibility to use the bond market in addition to the loan market

Obstacles

Limited flexibility

Limited liquidity

Capacity to analyse and manage the projects

5

5

5

5

3 are there risks attached to these changes
3. Are there risks attached to these changes ?

Opportunities

Increased volumes

Lower prices

Risks linked to a growing role of new players

New players : changes in habits, introduction of new practices

More volatility in capacities and pricing

Loss of technical skills in banks with no substitution in non-banks

Reduced flexibility brought by some investors in construction period, in drawings, in repayment phases, in renegotiations,…

Reduced access for industry to the networks and other products of banks

Financial risks on importers assumed by exporters

6

6

6

6

4 a new landscape
4. A new landscape ?

Banks still have the capacity to play a pivotal role in

Arranging

Processing

Funding

but will have to work with new players which can bring

Capacity to arrange small deals at lower cost

Capacity to process some flows

Fund over very large durations or in some currencies

7

7

7

7

4 a new landscape1
4. A new landscape ?

Can we expect a split in the roles, which were all managed by banks until recently ?

Arrangers / Coordinators

Banks, Advisors, Funds,,,

Processors

Banks, Advisors, Funds,,,

Fund providers

Co-Financers

Refinancers

Banks, Public vehicles, Funds,…

8

8

8

8