11h00 icc trade register - krishnan ramadurai (1)

ICC TRADE REGISTER
A TRUSTED SOURCE FOR TRADE AND EXPORT FINANCE
October 2018| Tbilisi

POLICY AND BUSINESS PRACTICES
NEW GLOBAL STRATEGIC PARTNERSHIPS
 risk analytics expertise
 world's largest database of defaults and probability of default estimates for banks
 Knowledge partner
 strengthening report‘s strategic relevance to the industry
The Trade Register’s high standard is ensured by a strategic partnership forged between the International Chamber of
Commerce (ICC), The Boston Consulting Group (BCG) and Global Credit Data (GCD).

PROJECT GOVERNANCE
The ICC Trade Register – An initiative for the global banking system enabled by ICC and the world’s leading banks
K. Ramadurai,
HSBC
(Project Chair)
Executive
Sponsors
(Trade Finance)
All members group
(Trade Finance)
Executive
Sponsors
(Export Finance)
All members group
(Export Finance)
Project Advisors*
D. Bischof, ICC
(Project Manager)
Global Credit Data
(Strategic Partner)
BCG
(Strategic Partner)
*Project Advisors:
 Henri d’Ambrières, HDA Conseil
Advisor for export finance products
 Hugo Verschoren, goVer Trade Technologies
Advisor for trade finance products
 Christian Hausherr, Deutsche Bank
Advisor for supply chain finance products
Project Ownership & Control
• Member banks remain owners of their
data and output at any time
• Members control the project scope
and output

DATA QUALITY IMPROVEMENTS – THE VALUE CHAIN
 By solving the data collection and validation challenges and building a robust infrastructure, data challenges will
be significantly addressed further enhancing the Trade Register and enabling use beyond the Annual Report.
 Enhancements will deliver a robust data pool and ultimately an asset that will add value to members.
 The Main purpose of this new infrastructure is to level up the ICC data quality to allow return Data to members Bank
who submit it. This will be done for the next submission if we receive enough quality data.

NEW DATA SUBMISSION PROCESS
 Data are submitted through a submission portal using GCD’s established infrastructure solution ho;
 The solution includes technical and functional validation of the submissions in line with those applied by GCD’s current
data pool collections.
 Submission through the secured GCD data portal provides an automatic data validation and workflow

ENHANCED PROJECT SCOPE
In scope are short-term traditional trade and supply chain finance products and medium to long-term export credit agency (ECA)
backed-export finance loans. Short-term products are instruments with a typical maturity of less than one year and with a clear
link to a specific underlying trade transaction. Note Performance Guarantees and Standby L/Cs have maturities greater than one
year.
Product Scope
The ICC Trade Register analysis focused on credit-related risk across the following products:
• Trade Finance:
 Import & Export Letters of Credit
 Loans for Import / Export
 Performance Guarantees and Standby Letters of Credit
• Supply Chain Finance: Restricted to ‘Payables’ part of supply chain products and solutions
• Export Finance: Export Loans backed by OECD/non-OECD Export Credit Agencies (ECAs) and Multilaterals for commercial and/or
political risk
Data pool comprehensiveness:
The Trade Register database is continually growing, with the total exposures exceeding USD 11 trillion in 2018, across over
20 million transactions
 Combination of Import L/Cs, Export L/Cs, and Performance Guarantees equals approximately 40% of global traditional Trade Finance
Flows

ROADMAP
 The development & Build were finalized by the end of September and the production full ready for October 8th.
 Banks who have signed the new NDA & Provide to GCD their Public IP will receive their personal login and can start
practice ( To test the new template ) submission.

NEW NDA
Due to the new collaboration between ICC, GCD and BCG, a new NDA has been drafted and was sent
to every member banks for signature
Main Change in NDA :
 GCD included as signing party
 All member banks authorize ICC to control the Datapools.
 Banks maintain the ownership of the data and give ICC perpetual usage rights. Including publication with
BCG.
 GCD Member banks agree that the old data is part of a special GCD Datapools ( STTR EAD/LGD , AGG
Product and MLTTR)

DATA PORTAL ACCESS
For GCD Member Banks
 Risk Department of your bank already have access to the GCD data portal so we will contact to you to
test your access and ask new users
For Non GCD Member Banks
 Once you have signed the new NDA, we will contact to you to setup your access and your users

SUBMISSION PLANNING

Content
 Portfolio Descriptive Metrics by Product and Years
 Number of Transaction per Obligor.
 Exposure per Obligor.
 Exposure per Transaction.
 Average Maturity.
 Transaction Volume & Default Rate by World, Europe, America and Rest of
the world
 Default Rate Boxplot by Banks.
 Your Bank Versus Others Banks Volume and Default rate.
 Obligor Volume & Default Rate by World, Europe, America and Rest of the
world
 Exposure Volume & Default Rate by World, Europe, America and Rest of
the world
Each data contributor receives an individual Peer Comparison report, which contains
benchmarking statistics related to the Volume and Default Rate Credit risk indicator
broken down by different regions and methodology. Your bank's indicators have
been included in the graphs with a distinct red mark.
NEW BENEFITS: INDIVIDUAL BENCHMARKING REPORTS ETC.

MEMBERSHIP EVOLUTION
The ICC Trade Register project was established in 2011 with 7 banks. Since then membership has grown to 22 member banks across
Europe, Africa, North America, Asia and Australia. ICC Trade Register Members are ‘owners’ of the project and have a prominent role
in steering the strategic direction. This ensures that its activities are member-centric driving the ‘by banks for banks’ credo.
 2017 Trade Register Report with contributions from 22 banks for trade finance assets and 18 banks for export finance
2010 2011 2012 2013 2014 2015 2016 2017
9
16
18
20
25 25 24
22
0 0
10
17 18
20
18 18
Membership evolution
Short Term Members Medium-Long Term Members
18%
9%
18%
55%
Regional Distribution
Asia Pacific Africa CIS Latin America
Middle East North America Western Europe Eastern Europe

MEMBERS AS OF JULY 2018
Europe
 AKA Bank
 Barclays
 BNP Paribas
 Crédit Agricole CIB
 Deutsche Bank
 HSBC
 ING
 KfW IPEX-Bank
 Santander
 Société Générale
 Standard Chartered Bank
 UniCredit
Asia-Pacific
 ANZ
 Bank of China
 Mizuho
 Sumitomo Mitsui Banking Corp
Africa
 Rand Merchant Bank
 Standard Bank
Americas
 Bank of America Merrill Lynch
 BMO Financial Group
 J.P. Morgan Chase
 Wells Fargo

MEMBERSHIP OPTIONS
Trade Finance Register*
(€ 15 000 / year)
Free access to annual ICC
Trade Register Report in
full (incl. Annex)
Participation in expert groups
to exchange views, ideas and
best practices on capital
regulations
Return of calculated export
finance metrics
Individual peer comparison
report, comparative analytics
& benchmarking data**
Basic
(free)
Export Finance Register
(€ 11 300 / year)
Trade Register Report
Membership fees and benefits
vary depending on the
respective membership
category
** can be used for annual credit risk
factor reviews and model calibration
Trade Register report in full
(incl. Annex)
Participation in expert groups
to exchange views, ideas and
best practices on capital
regulations
Return of calculated trade
finance metrics
Individual peer comparison
report, comparative analytics
& benchmarking data**
** can be used for annual credit risk
factor reviews and model calibration
* Covers also Membership in Export Finance Register

ADVOCACY EFFORTS AND ACHIEVEMENTS
The project has generated concrete, positive results in achieving equitable capital and regulatory treatment of trade and export finance
that aligns with the risk and default profile of this business on a global level.
Throughout the past years, ICC participated in various written consultations either individually or jointly with other industry
associations such as BAFT and IIF (selection):
 BAFT & ICC letter to APRA on Basel Standards and Trade Finance Implications (2015)
 BCBS Consultation on Revisions to the Standardised Approach to credit risk (2015)
 EBF & ICC Comments on leverage ratio for EBA (2016)
 ICC & BAFT Response to Basel Consultation Paper on Reducing Variation in Credit Risk-Weighted Assets- Constraints on the use of
Internal Model Approaches (2016)
 ICC Comments on proposed Changes to the European Capital Requirements Regulation and the Bank Recovery and Resolution Directive
(still in discussion since 2016)
Data from the trade register was used to help inform the discussions with various regulators, after which updates were made to the
proposed capital rules for trade finance in October 2011. In particular:
 Waiver for the one-year maturity floor for both issued and confirmed trade finance instruments by the BCBS. A number of regulators, incl.
those in the EU, the US and Hong Kong, have subsequently extended the waiver to cover all trade finance transactions
 Waived sovereign floor
Further adjustments to regulation for trade finance exposures since 2011 were:
 Reduced Credit Conversion Factor (CCF) for the Leverage Ratio
 Reduced CCF for the Exposure at default calculation for Performance Guarantees within the Capital Requirements Regulation (CRR)
 Changed inflow assumptions in the calculation of the Liquidity Coverage Ratio (LCR) within the CRR rules in Europe
Members of the Trade Register project are represented through the ICC in trade finance industry forums at the WTO, OECD and others, where the
Trade Register data are used to advocate their cause.

Banking Commission
THE INTERNATIONAL CHAMBER OF COMMERCE
is the world’s largest business organization with a network of over 6 million members in
more than 100 countries. We work to promote
international trade, responsible business conduct and a global approach to regulation
through a unique mix of advocacy and standard setting activities—together with market-
leading dispute resolution services.
Our members include many of the world’s largest companies, SMEs, business
associations and local chambers of commerce
We are the world business organization.
Become a member of the ICC Trade Register
For more information contact:
David Bischof
david.bischof@iccwbo.org

11h00 icc trade register - krishnan ramadurai (1)

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11h00 icc trade register - krishnan ramadurai (1)