Global Trade Finance Gap Reaches $1.6 Trillion
Sumaira FH Published September 09, 2016 | 03:25 PM
ISLAMABAD, (UrduPoint / Pakistan Point News -9th Sept,2016) : The inability of financial institutions to provide $1.6 trillion in support to buyers and sellers of goods across countries resulted in forgone growth and job creation in 2015, according to an Asian Development Bank (ADB).
Developing Asia's share of the global trade finance gap was $692 billion, said ADB in new study, "2016 Trade Finance Gaps, Growth, and Jobs Survey". The study quantifies market gaps for trade finance and explores their impact on growth and jobs through a survey of over 337 banks in 114 countries and 791 firms in 96 countries.
The annual survey is now in its fourth year.
According to the brief, trade finance gaps persist in part due to the cost and complexity of compliance with banking regulations, with 90% of surveyed banks citing anti-money laundering and know-your-client requirements as impediments to their ability to expand trade finance, especially for small businesses.
The report notes small- and medium-sized enterprises (SMEs) face the greatest obstacles in accessing affordable trade financing. Globally, 57% of trade finance requests by SMEs are rejected, against just 10% for multinational companies. High rejection rates lead many firms to turn to inefficient informal financing.
Related Topics
Recent Stories
Saka and Odegaard start for Arsenal, Guerreiro in Bayern midfield
Qatar PM says re-evaluating Israel-Hamas mediation role
Govt spokesperson terms allegations of PTI's Marwat against Saudi Arabia 'heinou ..
Minister appreciate UAE’s support for Pakistan economic challenges
Manchester City v Real Madrid Champions League starting line-ups
MIGA's support Pakistan in attracting foreign investments: Federal Minister for ..
Walker returns to captain Man City for Real Madrid clash
Action taken against price list violations in Khanewal district
DC chairs review meeting of DEG
Turkey accuses Israel's Netanyahu of using war 'to stay in power'
Pakistan ranked 5th most vulnerable country to climate change. Tirmizi
Nadal comeback ends in Barcelona Open second round
More Stories From Business
-
Minister appreciate UAE’s support for Pakistan economic challenges
9 hours ago -
MIGA's support Pakistan in attracting foreign investments: Federal Minister for Finance, Muhammad Au ..
9 hours ago -
International financial partners to invest $1.8 bln in KP: Advisor
10 hours ago -
Uzbek envoy invites FPCCI leadership to attend Tashkent Int'l Investment forum
11 hours ago -
Women development imperative for sustainable economic prosperity: Lansana Wonneh
11 hours ago -
Finance Minister, highlights geo-economic fragmentation, its impact on Pakistan
11 hours ago
-
High Tobacco tax prevails over propaganda, reduces cigarette consumption
13 hours ago -
SECP grants registration to first digital insurer
13 hours ago -
European stock markets rebound after heavy losses
13 hours ago -
SECP files complaint against two individuals on violation of trading
13 hours ago -
Govt prioritize to peruse economic reform agenda for sustainable economic development: Minister
13 hours ago -
IMF says global debt levels face 'Great Election Year' risk
14 hours ago