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.

1. ICC BANKING COMMISSION
ICC Trade Register Meeting
08 November 2017| London
POLICY AND BUSINESS PRACTICES
Banking Commission
David Bischof
david.bischof@iccwbo.org
INTERNAL

2. 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.
4 111
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

3. 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

4. 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.

5. 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