BNY Mellon released its "Overcoming the Trade Finance Gap: Root Causes and Remedies" report, which finds that the trade finance gap remains a significant issue for global trade, according to 100 global, regional, and domestic banks, specialist trade providers and other market participants responding to its survey. The $1.5 trillion global trade finance gap is affecting development and investment flows and financial inclusion, and businesses appear to be facing an increasingly uphill struggle in accessing the resources and support needed to fulfill their trade needs.

The report conducted between April 2018 and January 2019, found that trade finance rejection rates accelerated in more than one-third or (33%) of institutions surveyed in the past year. Additionally, nearly three-quarters or (71%) of respondents cited compliance constraints and the inability for applicants to provide quality know your customer (KYC) as a key factor influencing the volume of rejection rates. As a result, banks have had to be more selective in who they do business with and subsequently move away from geographies and sectors that appear to hold greater risk for less reward.