The Banker
February 11, 2025 at 12:16 PM
🚢 While fears of a global trade war loom, US tariffs could drive a rebound in trade finance revenues after years of decline. With supply chains shifting, banks stand to benefit from increased demand for letters of credit and guarantees.
📦 As tariffs reshape global trade, banks are adapting. “When you have the reconfiguring of supply chains, it means more trade routes, which means more business,” says Eric Li of Crisil Coalition Greenwich, which predicts trade finance revenues will hit $18.3bn in 2025.
🌍 While banks may capitalise on trade shifts, higher tariffs could strain fragile economies, raising borrowing costs and widening the $2.5tn trade finance gap. Could we see further consolidation in the sector as compliance costs rise?
*Read more here:* https://on.ft.com/4hTTm9M