Abstract
This chapter reviews the growth of international trade and expanding local markets on the basis of which banks in emerging markets nowadays are increasingly granting trade finance credits. It identifies and assesses destinations of the loans, including trading, manufacturing, and service businesses—especially wholesalers, distributors, importers, exporters, and manufacturers' representatives. It investigates the exact volume of cumulative annual transactions that pass through the banking system from these businesses. The thinking that trade finance offers the largest aggregate annual volume of transactions to banks is investigated and related to the situation in emerging markets. In doing so, it was established that trade finance is easily the riskiest and most profitable of all normal types of bank lending in emerging markets. Distinguishing features of the risks are examined in the context of methodology that the banks adopt to mitigate the risks and suggestions for strengthening control of trade finance risks in emerging markets.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Emerging Market Bank Lending and Credit Risk Control
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
