Wednesday, Apr 30, 2014
Dubai: The International Chamber of Commerce (ICC) Banking commission will be leading a major project globally to standardise and harmonise market terminology for global supply chain finance products and services.
Today, supply chain finance (SCF), refers to a wide range of products, programmes and solutions in the financing of international trade.
The announcement was made on Wednesday during the four-day meeting between ICC Banking Commission and the Dubai Chamber of Commerce and Industry, which focused on new engines of growth in trade finance and prospects for the industry.
“Due to the increased collaboration of bank and non-bank representatives globally and the advent of new communication technologies, it is more important to adopt universally-accepted terminology and techniques currently being developed by the industry to support increasingly globalised supply chains,” Kah Chye Tan, Chair of the ICC Banking Commission, said during the meeting.
He did not identify what these terminologies are but he said that it will be released soon.
“SCF is a growing market with considerable business opportunities identified for the near future,” Tan said.
There is a growing need for greater harmonisation within the trade finance industry. It extends to products and services offered by financial institutions such as euro-Banking Association (EBA), Bankers Association for Finance and Trade (BAFT), Factors Chain International (FCI), International Factors Group (IFG) and the International Forfeiting Association (IFA), he added.
Hisham Al Shirawi, second vice chairman of the Dubai Chamber of Commerce and Industry, took the meeting as a chance to highlight the city’s advantages for the global trade, banking and finance communities.
“Trade contributes 30 per cent to GDP and providing trade finance services that meet the needs of the rapidly changing world is important for Dubai’s future growth,” Al Shirawi said.
By Zaher Bitar Senior Reporter
Gulf News 2014. All rights reserved.
