What is the ICC Trade Register?

The ICC Trade Register is an unparalleled instrument to measure global risk in trade and export finance facilitated by the International Chamber of Commerce (ICC) and the world’s leading banks.

The ICC Trade Register aims to provide:

• An objective and transparent view of the credit risk profile and characteristics of trade, supply chain and export finance with the intention of contributing to informed policy and regulatory decisions.

• Access to high-quality and up-to-date data on trade, supply chain and export finance, which can be incorporated as an integral component of annual credit risk factor reviews and model calibration for trade finance.

• A common understanding of the international regulations affecting bank capital requirements for trade and export finance as part of ICC’s commitment to effective and collaborative advocacy.

Project scope

The scope of the ICC Trade Register has continued to evolve over the recent years to include, for example, an expanded geographic reach, number and diversity of contributors, volume and quality of data, and alignment of analytical methods to the Basel Approach.

The product scope includes short-term traditional trade and supply chain finance products as well as medium to long-term export credit agency (ECA) backed export finance loans. Short-term products are instruments with a typical maturity of less than one year and with a clear link to a specific underlying trade transaction.

Note: Performance Guarantees and Standby L/Cs have maturities greater than one year.

For the first time this year, the Trade Register has also included Supply Chain Finance (specifically Payables Finance) within the study. Hence, the ICC Trade Register analysis focuses on credit-related risk across the following products:

• Trade Finance
  • Import and export letters of credit
  • Loans for import/export
  • Performance guarantees and standby letters of credit
• Supply Chain Finance
  • Restricted to “payables”, part of supply chain products and solutions
• Export Finance
  • Export Loans backed by OECD/non-OECD ECAs and multilaterals for commercial and/or political risk

Highlights

Overview of findings in 2018 report:
Default rates and expected losses remain low for trade finance products (2008-2017)

Trade finance products have favorable risk profiles…(2008-2017)

…compared to non-trade asset classes (2008-2017)

Supply chain finance represents similar or lower risk than other trade products (2008-2017)

Medium to long-term trade finance default rates remain low with small increases in corporate and sovereign rates

Members

The ICC Trade Register project was established in 2011 with 7 banks. Since then, membership has grown to 22 banks across Europe, Africa, North America, Asia and Australia. ICC Trade Register members are ‘owners’ of the project and have a prominent role in steering the strategic direction. This ensures that its activities are member-centric driving the ‘by banks for banks’ credo.

ICC Trade Register membership is open to any bank that has a demonstrable capability to collect and deliver data. Membership is currently only available for regulated banks.

• Number of members today: 22 banks
• The information on trade finance products, gathered from member banks, includes approximately 35% of global traditional trade finance flows, excluding loans for import/export.

Member distribution across the globe:

Member benefits

• Access to exclusive content
• Regulatory updates from around the world
• Policy and advocacy dialogue
• Gain access to members-only meetings
• Unique partnership opportunities
• Personalised benchmarking with peers

For more information on how to become a member and membership fees

Global Strategic partnerships

The Trade Register’s high standard is ensured by a strategic partnership forged between the International Chamber of Commerce (ICC), Boston Consulting Group (BCG) and Global Credit Data (GCD).

Boston Consulting Group:

The Boston Consulting Group (BCG) operates as a knowledge partner, benefitting the project with support in producing the annual Trade Register Report and strengthening its strategic relevance to the industry.

Global Credit Data

The project is strengthened with the risk analytics expertise of Global Credit Data (GCD), a not for profit initiative owning the world’s largest database of defaults and probability of default estimates for banks. GCD assists ICC with collection and aggregation of data and preparation of the ICC Trade Register report.