August 1, 2001
More than ever before, commercial banks are drawing a broader range of participants into trade finance deals. Financings involving commercial banks, export credit agencies (ECAs), multilateral financiers and insurers, as well as private political and credit insurers are part of a natural evolution as bankers execute larger deals that involve more players while trying to isolate additional risks. Investment banks are keener than ever to achieve a steadier flow of investment grade-type transactions that they can sell. But banking industry consolidation has also played a role. Existing financiers must absorb greater exposure and must constantly introduce innovative risk mitigation solutions to
Trade finance deals structures in Latin America are bigger and more sophisticated, spurring extraordinary cooperation among export credit agencies, multilaterals, private insurers and commercial banks.