A “Thought-Starter” Contribution on Trade Finance to the 2020 G20 Process
On the occasion of the Saudi B20 Inception event, a new Business at OECD report released (available here) highlights that trade finance, key to business trust in global trade activities, is a case in point for the need to make additional efforts to tackle regulatory fragmentation:
• The role and further development of trade finance is central to business trust in global trade activities, with four-fifths of those activities – worth USD 15 trillion a year – underpinned by specialized loans or guarantees.
• Access to services supporting trade transactions, especially financing and risk mitigation, should be made more easily and affordably accessible especially to SMEs to address the unmet demand for trade finance.
• Further developing “trade ecosystems” can support payments and enable trade financing, accessible to both SMEs and large corporates, leveraging both traditional data sources and new data arising from digital technologies.
Gianluca Riccio, Vice-Chair of the Business at OECD Finance Committee and member of the B20 Finance and Infrastructure Taskforce added: “We should carefully consider the cumulative burden of regulation, look at reforms with small players in mind, and have a holistic view across players to achieve sustainable, balanced growth. As highlighted in our paper, it is imperative for all policy-makers and standard-setting bodies to have an overarching view across regulations.”
About Business at OECD:
Established in 1962, Business at OECD stands for policies that enable businesses of all sizes to contribute to growth, economic development, and societal prosperity. Through Business at OECD, national businesses and employers’ federations representing over 7 million companies provide and receive expertise via our participation with the OECD and governments promoting competitive economies and better business.
