Self liquidating magazines


04-May-2016 01:24

Both trade financiers and regulators should strive to avoid this.There was a time when trade finance received favourable regulatory treatment.These proposals, contained in a Consultative Document ("Strengthening the Resilience of the Banking Sector"), are open for public comments through the spring of 2010.Under the new proposals, it seems that trade finance is facing another hurdle.While the in-balance sheet treatment of trade credit seems not to have changed capital-wise, the credit conversion factor for off-balance sheet operations records a five time increase relative to the 20% credit conversion factor used under Basel II for stand-by letters of credit and similar trade bills – as for other any other kind of off-balance sheet assets.

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