Banking & finance

Global Supply Chain Finance Forum takes decisive step in clarifying Supply Chain Finance

  • 12 October 2018

Following the release of Standard Definitions for Techniques of Supply Chain Finance in 2016, the Global Supply Chain Finance Forum is taking another decisive step in clarifying Supply Chain Finance.

Comprised of ICC, BAFT, the Euro Banking Association, Factors Chain International and the International Trade and Forfaiting Association, this industry consortium will leverage its collective footprint to aid financial institutions, accounting firms, rating agencies and regulators in gaining clarity and consistency on the various terms and techniques used. The forum will remain alert and react to major market developments in all relevant matters for supply chain finance.

The forum is invigorated with the recent election of Christian Hausherr, European Product Head of Supply Chain Finance at Deutsche Bank as its Chair. As a recognised expert in the field, a key player in the drafting process of the definitions document and in the Wolfsberg/ICC/BAFT Trade Finance Principles, and a prime mover in the efforts to include supply chain finance within the scope of the ICC Trade Register, Hausherr was elected for his vast ability to lead the forum towards achieving its goals and implementing its fresh action plan.

Supply chain finance is one of the fastest growing trade products yet evolution into rules for supply chain finance is premature at this stage. While we observe increasing adoption of the terminology, financial institutions do not speak the same language when it comes to supply chain finance. Recent developments in the accounting treatment of some techniques have also underlined the need to engage and align with other industry stakeholders.

The priority action plan is to create additional guidance on individual techniques, starting with receivables discounting and payables finance as well as to engage with accounting firms and rating agencies to help clarify accounting treatment. Other areas of work such as the production of reliable statistics on supply chain finance and developing studies on the evolution of this market are also being considered.

For qualified experts interested in contributing to the implementation of this work plan, please get in touch via the Supply Chain Finance Forum website. Candidates will be contacted to provide any further required information.