ICC BANKING COMMISSION ICC Trade Register Meeting

08 November 2017| London

POLICY AND BUSINESS PRACTICES

Banking Commission

David Bischof david.bischof@iccwbo.org

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