Trade Finance for Corporate Bankers

Trade Finance for Corporate Bankers

Target Audience

Corporate Credit Bankers, Relationship Managers, Risk Managers, SME Corporate Bankers

Audience Level

Introductory & Intermediate

Duration

3 Days: 9am – 4pm

Delivery

Online or In-class

The bankers will be introduced to the need and development of trade finance through the lens of risks at a micro and macro-economic level (country, currency, industry, counterparty risks etc). They will be introduced to the range of typical products used with the associated incoterms that are necessary to help them appreciate client needs and solutions. They will also learn on the evolution of trade finance over the years and the current technology assisted advancements on blockchain usage as well as the increasing regulatory focus.

This course caters to beginners and middle bank positions in trade finance, for bankers with lower than years bank experience, new joiners to a commercial corporate bank or new RMs and credit personnel – who will need to understand the fundamentals of trade finance and work with this product as an integral part of their front office or second line of defense roles.

  1. Revisiting basics and the foundations of this business (allowing the RM to have better quality discussions with the client)
    • The evolving domestic and international trade environment
    • The stakeholders – and their respective needs and influence (banks, importers/exporters, insurers, surveyors and certifiers, transporters, regulators, standardisation bodies, customs, warehousing etc)
    • Risks in International Trade (appreciate an Enterprise view of risks)
      • Macro Risks – i.e. Country Risk; Foreign Bank Risk; FX Risk; Industry Risk; Fraud
      • Micro/Commercial Risks – i.e. Know your Counterparty, Payment Risk
      • Operational & Regulatory risks
    • Product selection (risk based decisioning)
    • Introduction to incoterms and Key Trade & Transport Documentation.
  2. Different trade finance products and their features, advantages, disadvantages. Relationship managers will look at this from diverse angles of client suitability, structure and product choice implications, operational complexity, transactional control.
    (products covered will be mapped to the Bank’s offering).

     

    1. Documentary Credits
    2. Documentary Collections
    3. Guarantees
    4. Receivables Finance
    5. Distributor Finance
    6. Supply Chain finance
    7. Factoring
    8. Standby Letters of Credit
    9. Import / Export Loans (pre and post shipment)
  3. Transactions and using trade finance to support them
    • How trade finance is a risk mitigation tool / technique (for the client and for the bank)
    • How trade finance supports
      • Working capital requirements – shorter cycles
      • Projects & Capex – longer cycles
    • Introduction to the benefits of trade products in capital calculation
      Working capital cycle – Often this is what gets the company into difficult and is also used to salvage problem loan situations.  RMs will learn to apply trade finance awareness to structuring appropriate solutions.
  4. Developments in Trade finance
    • Blockchain usage – Fintech (invoice financing / receivable financing / doc trade) Examples – Marco Polo
    • Evolving regulatory focus and emphasis

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If you are interested to find out more details about our courses, please fill in your details below and we will contact you.

JBA Training offers:

  • tailored, technical and soft skills training services to banks and finance companies
  • face to face or online training programmes
  • wide geographical spread for delivering courses across Europe, the Middle East, Africa and the Far East

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