Macroprudential Regulation and Trade Finance: Unintended ... Opportunities? (By invitation only)
Thursday, September 17, 2015 / 3:45 pm - 4:45 pm
Claude Lopez, Director, International Finance and Capital Markets Research, Milken Institute
Following the financial crisis and subsequent global trade collapse, macroprudential regulation and trade finance came to the forefront of the economic debate. By aiming to mitigate systemic risk, macroprudential regulation of Western banks could limit the availability of trade finance in Asia. Specifically, the short-term nature of trade finance -- about 105 days for loans -- made it an easy target for European banks looking for places to deleverage under Basel III. In essence, Asia, the largest consumer of trade finance, may become the first casualty of Western macroprudential policy. This private session will provide a unique opportunity for Asian regulators to share their views on how, why and when macroprudential regulation has succeeded in Asia and to offer their take on Basel III. Participants also will discuss how it and other new regulations, such as Know Your Customer, may force changes in the composition of trade finance in Asia and what must be done to attract more non-bank financial intermediaries.