Trade and Trade Finance in the 2008-09 Financial Crisis
Electronic Access:
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Summary:
Global merchandise trade sharply declined in late 2008 and early 2009, and some press and financial market reports assigned a large role for the decline to trade finance. However, the available evidence suggests that shocks to trade finance were not the major factor in the decline in trade. Surveys of commercial banks by the IMF and others found that while bank-intermediated trade finance fell in value during the crisis, it fell by less than merchandise trade. As a result, the share of world trade supported by bank-intermediated trade finance increased despite higher pricing margins. Other explanations appear to account for the bulk of the reduction in international trade.
Series:
Working Paper No. 2011/016
Subject:
Banking Basel II Export credits Exports Financial regulation and supervision International trade Trade finance Trade in goods
Frequency:
Biannually
English
Publication Date:
January 1, 2011
ISBN/ISSN:
9781455212507/1018-5941
Stock No:
WPIEA2011016
Pages:
65
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