Statistical Coverage of Trade Finance - Fintechs and Supply Chain Financing

IMF Working Papers, July 31, 2019

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Title: Statistical Coverage of Trade Finance - Fintechs and Supply Chain Financing
Author: Cornelia Lotte van Wersch
Date: July 31, 2019
Core purpose: Proposes a stand-alone dataset to reflect the scope, dynamic and recent innovations of the trade finance market to support macroeconomic policy analysis.

Trade finance is described as "the backbone of international trade for entities ranging from a small businesses to multi-national corporations."
An estimated "80 percent of world trade relies on this form of finance (WTO, 2017)."
Despite systemic importance and rapid growth, "data availability is only partial."
During the 2008 financial crisis, policy makers, notably the G20, "recognized that the absence of comprehensive trade finance data posed a significant hurdle for policy-makers to make informed, timely decisions."

The paper emphasizes the need for comprehensive and timely statistics on trade finance to inform macroeconomic policy decisions.
It highlights the market's recent innovations, including fintechs and supply chain financing, as elements that should be captured in a dedicated dataset.
The proposed stand-alone dataset aims to reflect:
- scope of the trade finance market,
- dynamic developments,
- recent innovations affecting trade finance provision and coverage.

Establish a dedicated, stand-alone dataset for trade finance to support macroeconomic policy analysis and timely decision-making.
Ensure the dataset captures both traditional trade finance instruments and newer market developments such as fintech-enabled solutions and supply chain financing.
Address the historical gap in comprehensive trade finance statistics that became evident during the 2008 financial crisis and was noted by the G20.

Subject: Banking, External sector statistics, Fintech, Trade credits, Trade finance
Keywords: financing, firm, provider, trade, WP