Commodities have had a rough ride in the last few years. This coupled with the need to improve returns on risk-weighted assets and capital deployed for banks, have resulted in some banks reducing their exposures to this sector, and concentrating only on the top end of the risk pyramid. Traders have stepped in to fill this financing gap in the market by venturing into various emerging markets. To improve their competitiveness, banks are actively exploring the use of risk mitigation tools to improve their capital efficiency for structured commodity trade financing. This has led to an increase in the use of trade credit insurance.
This Trade Credit Insurance workshop examines the use of credit insurance as an enabler of structured trade and commodity finance. Facilitated by industry veterans, this workshop adopts a case-study learning approach to share practical insights on how to put in place effective credit insurance solutions.