Asian trade finance could be heavily impacted by Basel III

Asian trade finance could become substantially more expensive as a result of the Basel III capital requirements, according to a survey that was recently conducted by regional development organization the Asian Development Bank (ADB).

Asian trade finance could become substantially more expensive as a result of the Basel III capital requirements, according to a survey recently conducted by regional development organization the Asian Development Bank (ADB). 

This comes as the Basel Committee on Banking Supervision recently released the results of its most recent monitoring activity, which examined the existing capital of banks and determined how much these lending institutions would need to comply with the capital rules if they had been effective as of July 2012. 

The lending institutions taking part in the ADB survey expressed their concerns about repeatedly being unable to meet the financing needs of firms in the area, according to The Asset. The poll revealed that $425 billion of trade finance requests were declined out of the $2.1 trillion proposed by market participants. 

"Dramatic shortfalls in meeting financing needs of importing and exporting countries are exacting a huge toll on job creation and economic growth in the region," Steven Beck, head of trade finance at ADB, told the news source. "These trade finance gaps need to be addressed to give developing Asia a boost to create jobs and alleviate poverty." 

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