icc banking commission london technical meeting - icc trade register meeting
TRANSCRIPT
ICC BANKING COMMISSION ICC Trade Register Meeting
08 November 2017| London
POLICY AND BUSINESS PRACTICES
Banking Commission
David Bischof [email protected]
INTERNAL
POLICY AND BUSINESS PRACTICES
ICC TRADE REGISTER: GENERAL OVERVIEW • Trade & Export Finance has been considered long-time as a low risk business, which explains some mitigation factors
granted in Basel I (i.e. Credit Conversions Factors for LC’s and guarantees ranging from 20% - 50%). • The goal is to provide an objective, industry-wide source of Trade Finance (TF) and Export Finance (EF) related risk
and loss data.
4 1 1 1 4
2
1 3
1
2
1 5
1
2010 2011 2012 2013 2014 2015 2016 2017
5 5 7
12
18 18 16
18
10 12
14 15 14
21
14 12
Member Banks
Short Term TR Members Med-Long Term TR Members INTERNAL
POLICY AND BUSINESS PRACTICES
INFRASTRUCTURE ENHANCEMENT
Combined Infrastructure Project & Data Collection Operations with Global Credit Data (GCD) ICC partner with GCD* in a combined infrastructure project & GCD* operate data collection as a separate GCD data pool. *GCD is using Capgemini as data agent / vendor
Robust infrastructure • Established data collection infrastructure & processes
Credit risk data pooling
specialists
Data return guaranteed • Integrated portal, aggregation and return engine
Optimized implementation time • Lead-in work 2016 partnership
Benefits
POLICY AND BUSINESS PRACTICES
MEMBER RETURN – ICC TR VS GCD
The gaps in infrastructure and data quality are further highlighted when the useable member return of the Trade Register and GCD data pools are compared.
POLICY AND BUSINESS PRACTICES
3.1 PROPOSED PROJECT EVOLUTION: AMBITION
There is an real opportunity for the Trade Register to be incorporated as an integral component of annual credit risk factor reviews and model calibration for Trade Finance by all member banks.
Membership
Maintain and grow membership
Relevance
Authoritative industry resource
Regulatory compliant outputs
(IFRS9/CECL compliant)
Scope expansion
Trade Finance products
Receivable and Supply Chain
Finance
Other Risk Types (i.e. Operational,
Fraud)
Data return
Provide concrete data return
Product expansion
Comparative analytics
Benchmarking
Exclusive members report