![]() And I think part of the reason for the demand uplift is that after the Covid-19 pandemic, corporate management teams have had time to sit down and consider their capital strategy, and one of the things that they converged upon is supply chain resiliency and how they can make their trading partners more stable. Shrivastava: In my 10 to 15 years in trade, I don’t think I’ve ever seen the kind of demand pickup in working capital solutions and trade that we’ve seen over the last six to nine months. This is all leading to a shift in the landscape in terms of who we finance and how we finance them. The CHIPS Act is pushing some companies from Asia to set up plants in the US. If you tie in electric vehicles, these markets are becoming even more important for the financing of mining and refining of nickel and copper, for example. We see in intra-Asia trade, where Standard Chartered has a strong footprint, how markets like Vietnam and India are becoming more important. Galv ã o: The big topic that we see is the geopolitical tension shifting a little bit. I agree with Jonathan – we’re pretty bullish on how this product will continue to perform into the near future. We are focused on large corporates, which has been a fairly stable marketplace for us. ![]() That’s because they want to deploy that cash, either to pay down costlier debt, or to get ahead of some future purchases in light of some inflationary pricing pressure they may see on those products. Additionally, we have a very large book of receivables programmes, and our clients want to cash out their receivables earlier. We’ve witnessed suppliers who were not interested in some of our programmes two years ago, but who then came back and found them much more attractive – not only because it’s a lower cost all-in, but because it’s a potential alternative source of liquidity. Despite the jump in interest expense, our clients are laser-focused on working capital solutions and trying to find more low-cost financing alternatives. Sullivan: We’re not witnessing a slowdown in demand. I think there are a lot of reasons to be optimistic that we’ll continue to see more growth and new products. They’ve got ESG goals, which can be better met with more use of trade finance. They are reshoring, and that requires different types of trade finance they need more resilience in their supply chains, and that also requires more trade finance. A lot of corporates now are emphasising operational efficiency and new ways to support their trading partners. ![]() But demand has increased in different ways. Richman: We continue to see increasing overall demand, and the fundamental trend of corporate clients wanting to have good working capital management continues unabated. Maureen Sullivan, head of supply chain finance, MUFGīrady: How would you assess the trade and supply chain landscape over the course of the last year? What have been some of the major trends driving demand, appetite and capacity?.Michael Stitt, head of supply chain finance origination, US Bank.Anubhav Shrivastava, commercial bank trade head, JP Morgan.Jonathan Richman, head of US trade finance and working capital, Santander.Glenn Ransier, global standby and demand guarantee product manager, Wells Fargo.Joon Kim, global head of trade finance, working capital and portfolio management, BNY Mellon Treasury Services.João Galvão, head of trade finance sales, Americas, Standard Chartered.Geoff Brady, global head of trade and supply chain finance, Bank of America ( host and chair).Ozgur Akdeniz, North American trade sales head, Citi.GTR’s annual Americas roundtable discussion convened in New York in September to tackle perennial and emerging topics in trade finance such as digitisation, the evolution of sustainable finance, the role of capital markets, fluctuations in demand for supply chain finance and appetite for inventory financing solutions. Related News JBIC and Japanese banks team up on ¥11bn Boeing transaction Kairos Risk snaps up credit and surety veteran Lim Miga sticks by €349mn guarantee for African trade finance Some banks praised for “rapid progress” on deforestation, but wider action needed Bank results show muted trade finance market
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