Basel III may kill trade finance in Asia, says StanChart banker

Chinese currency

The Asian trade finance market is at risk as a result of Basel III proposals, says Paul Harrald, head of group portfolio risk at Standard Chartered in Singapore.

Trade finance provides importers and exporters with short-term funding through loans, letters of credit and guarantees, but the ability of banks to perform these tasks will be severely constrained due to certain elements of Basel III, such as the leverage ratio.

Under the leverage ratio, banks are required to set aside capital equivalent

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: