The Trade Finance Program and Its Role in Lifting Impediments to Trade
Abstract
Description
This brief looks at the trade enhancement potential of fintech, issues that need to be addressed to bridge gaps in trade finance, and implications for banks around the world.
Trade finance markets are huge, estimated to be $10 trillion yearly, supporting trade valued at $18 trillion per year. A $1.6 trillion gap is therefore significant especially for SMEs in developing countries, known for creating a high proportion of new jobs, particularly in smaller communities.
This brief presents the various trade finance programs and initiatives of ADB to bridge gaps in trade finance, such as the Supply Chain Finance Program which provides support to small and medium-sized enterprises. The paper also presents highlights from ADB's 2016 trade finance survey to demonstrate the direct role of trade finance in the economy and in society, and the exciting potential advances in digital trade.