The International Chamber of Commerce (ICC), in collaboration with Global Credit Data (GCD) and Boston Consulting Group (BCG), has released its highly anticipated 2024 Trade Register Report. This comprehensive report sheds light on the remarkable resilience of trade finance instruments, showcasing their continued low credit risk despite the ongoing geopolitical and economic challenges that have shaped the global landscape.

Weathering the Storm: The Stability of Trade Finance in Turbulent Times

Unwavering Resilience in the Face of Adversity

The 2024 ICC Trade Register Report confirms that trade, supply chain, and export finance have maintained their low-risk profiles, with default rates remaining consistently low across all regions and asset classes. Even when defaults do occur, they are often attributed to well-known commercial, geopolitical, or macroeconomic factors, rather than inherent vulnerabilities within the trade finance ecosystem. This finding underscores the remarkable stability of these financial products, which continue to serve as vital tools for mitigating risk and preserving liquidity, ultimately supporting the stability of global trade flows.

Navigating Uncharted Waters: The Evolving Landscape of Trade Finance

As the world grapples with ongoing geopolitical and economic pressures, the trade and supply chain finance market has demonstrated its ability to adapt and evolve. According to Ravi Hanspal, a Partner at BCG, banks are observing that customers are now prioritizing leading service and digital capabilities more than ever before. This shift has driven a significant investment by banks in technology, enabling them to accelerate the seamless integration of trade finance solutions.

Empowering Informed Decisions: The ICC Trade Register's Comprehensive Insights

The ICC Trade Register has firmly established itself as the leading, authoritative global source on credit risk and broader market dynamics in trade and supply chain finance. Its comprehensive data set, representing nearly a quarter of all global trade finance transactions, provides unparalleled insights into the industry. This 2024 edition of the report includes extended market insights and data on global trade and trade finance, offering a wealth of information to industry stakeholders.

Shaping Regulatory Frameworks: The ICC Trade Register's Influence

This year, the ICC and GCD have demonstrated the immense value of high-quality, representative data in shaping trade finance regulations. Through their contributions to emerging regulation on Basel III capital treatment, they have reinforced the point that trade finance is a low-default asset class. Krishan Ramadurai, the outgoing Chair of the ICC Trade Register Project, encourages more banks to participate in the project, emphasizing that increased data will only further solidify this crucial finding.

Insuring Trade, Strengthening Resilience: The Role of Insurance

Marilyn Blattner-Hoyle, the Global Head of Trade Finance and Working Capital Solutions at Swiss Reinsurance Company, underscores the critical role of the ICC Trade Register in providing quantitative and qualitative statistics that underpin the power and stability of trade-related credit risks. She explains how the Register's insights help insurers like Swiss Re to get comfortable insuring more trade with their bank clients, ultimately making trade and the world more resilient.

Elevating the Trade Finance Narrative: The ICC Trade Register's Enduring Relevance

Christian Hausherr, the Product Manager for Supply Chain Finance at Deutsche Bank and a member of the ICC Trade Register Steering Committee, emphasizes the enduring relevance of the ICC Trade Register. He notes that the data approach and the scope of the Trade Register have been materially enhanced over the years, offering unique insights not only into trade finance risk but also providing valuable macroeconomic insights to its readers.

Fostering Collaboration and Transparency: The ICC's Appreciation for Member Banks

ICC Policy Manager Tomasch Kubiak expresses the organization's deep appreciation for the ongoing contributions of member banks to the ICC Trade Register project. He highlights that this year's edition provides a comprehensive insight into meaningful trends in global trade finance, as well as complete data collected from the members, which is now available on demand.