A Message from the Chair – October 2020

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On October 23, BAFT’s Board Chair, Mark Garfield, published his monthly communication to the wider BAFT membership.

In my history classes in school much of the study of countries and societies centered around the trade of commodities; nutmeg, silk, coffee. In my finance classes, the most popular commodity mentioned in studying market prices was pork bellies. I enjoyed learning about transportation developments from the creation of the Erie, Suez, and Panama canals to move commodities more efficiently.

Maybe that is why I chose to pursue international banking which supports, finances and transacts the trade of commodities from agricultural products such as grains, nuts, and meat products to hard commodities like essential minerals, oil and gas, and the daily trading of currencies. It has kept every day interesting and fast-paced. Plus, from working with a trading company a few years back I learned that from pork bellies we get bacon!

This summer brought with it unusual circumstances in the commodities and logistics markets. The spot market in oil was in the negative. Cargo vessels were unable to unload commodities as ports were closed. There were storage shortages and disrupted supply chains.

This disruption as well as the rapid pace of technological change raises many questions. What are the immediate issues commodity industries are facing? Which commodities will be in the greatest demand in the future? How will they be delivered most efficiently? Where does sustainability fit in? Will there be virtual commodities in virtual currencies? How will our banking industry change to continue to support the exchange of commodities globally? Where are our clients looking to us to lead?

On Tuesday, October 27, we will have the opportunity to listen to three commodity companies in the second series of The BAFT Crystal Ball Series. It is an excellent chance to hear industry leaders discuss the future of the commodity markets in our ever-changing world. Thinking back to my high school science classes where I used a slide ruler to solve equations in my first year but by my third year, thankfully, I had an electronic calculator…today is moving even faster.

While this session is hosted in a European and Asian friendly time zone, our members based in North America, like me, can register to receive access to the on-demand recording.

See you soon virtually!

Mark Garfield
BAFT Chair
Head of Global Financial Institutions
Zions Bancorporation

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BAFT has announced Jose Luis Calderon, global head of global transaction banking at Santander, as the new chair of its Transaction Banking Global Leaders (TBGL) group.

WASHINGTON — Jose Luis Calderon, global head of global transaction banking at Santander, succeeds Diane Reyes, group general manager and global head of global liquidity and cash management at HSBC, who led the group for the past two years.

The TBGL brings together the leaders of the industry’s largest transaction banks to discuss solutions to common points of interest where cross-industry collaboration is required. Current topics of discussion include regulatory compliance, financial crime mitigation, payments and trade innovation, IBOR transition, human capital development and increasing the profile of the transaction banking industry.

“I am thrilled with the opportunity to chair BAFT’s Transaction Banking ‎Global Leaders Group at such challenging times,” said Calderon. “Our industry has proven essential to maintaining companies’ access to banking services, controlling their liquidity and funding their working capital needs, and ultimately, being close to our clients when they most need us.”

Calderon joined Santander in 1997 and has held various positions in Santander Corporate & Investment Banking (Santander CIB) division. Since 2004, Calderon has occupied different management roles within Santander CIB, acting as product manager of GTB Europe, head of GTB Iberia and head of GTB Europe until 2014, when he was appointed global head of global transaction banking managing a team of more than 500 professionals. He holds a bachelor’s degree in economics and business administration from Universidad de Cantabria, and is a member of various international bodies such as the SWIFT Board and IBOS Association.

“Jose has been an active and valuable contributor to the TBGL since he joined five years ago, and has been an important leader in the transaction banking industry more broadly,” said Tod Burwell, BAFT president and CEO. “The industry is facing unprecedented challenges at this time, and collaboration is paramount to moving forward. We look forward to the future under Jose’s leadership.”

The group includes 18 institutions from across multiple continents, bringing geographic diversity and balance to the industry dialogue. Participants collectively represent a significant share of the transaction banking services offered by financial institutions.

About BAFT
BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft.org.

 

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

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BAFT today released the Certificate in Introductory Transaction Banking (CITB), an online self-guided study through the basics of global transaction banking (GTB). The certificate is an effort to address a gap in readily available education for those looking to understand transaction banking and is available via the BAFT Learning Management System.

WASHINGTON — BAFT, the leading global trade association for transaction banking, today released the Certificate in Introductory Transaction Banking (CITB), an online self-guided study through the basics of global transaction banking (GTB). The certificate covers payments, trade, and compliance for entry-level bankers or for those transferring into GTB from another discipline within the bank.

The certificate is an effort to address a gap in readily available education for those looking to understand transaction banking.

“BAFT has always been a channel for delivering quality training and education, however, we noticed a significant need to educate the next generation of bankers on the basics of transaction banking,” said Tod Burwell, president and CEO, BAFT. “We are excited to share this certificate with the industry, which complements some of our other human capital development offerings such as our Future Leaders Program.”

Participants will obtain a basic understanding of the key transaction banking services including cash management, trade finance, compliance, correspondent banking and cross-border payments; in addition to common industry terminology, and the role these products play in the banking industry. Finally, candidates will understand the rich history of transaction banking, where it stands in its evolution today, and explore the innovative efforts being made by the industry.

The certificate is comprised of seven courses, which is expected to take a candidate roughly five to seven hours to complete. Each course is self-study with detailed voice overviews from the authors, including knowledge checks, cases studies, and concludes with a mandatory exam.

To develop the certificate, BAFT convened a core advisory group of global correspondent bankers who specialize in each of the core areas of transaction banking. BAFT’s Certificate in Introductory Transaction Banking provides a strong foundation for new hires as well as more senior staff that are new to transaction banking.

“Having an awareness of the core elements is critical to ultimately mastering transaction banking as the business is complex and continues to evolve rapidly,” said Chuck Kohler, an advisor and EVP, global payment services, Wells Fargo.

Advisors George Adrianos of BNP Paribas, John Ladany of Citi, Barry Tooker of iSoftware4Banks and Inna Gogoua of PNC Bank were also instrumental in the development and review of the certificate.

The courses were authored by well-known industry experts Craig Weeks and Alexander Malaket.

The Certificate in Introductory Transaction Banking is available on the BAFT Learning Management System here.

For inquires or to find out about group pricing please contact Shawn Haynes at [email protected].

About BAFT
BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft.org.

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

Follow us on Twitter: @BAFT
Follow us on LinkedIn: BAFT

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Leading representatives from the UK and US financial and related professional services industries have joined together to propose a united business vision for future UK-US regulatory cooperation and dialogue. The group’s proposals aim to help forge even closer links between the hosts of the world’s two foremost financial centers.

The paper is released on the same day that the group relaunches as the British American Finance Alliance (BAFA). BAFA’s recommendations seek to build on the success of the UK/U.S. Financial Regulatory Working Group (FRWG), announced by HM Treasury (HMT) and the U.S. Department of the Treasury (UST) in April 2018 [2].

BAFA argues that establishing the right parameters and repurposing the FRWG behind a long-term vision will enhance regulatory dialogue. In turn, this will reduce cross-border frictions between the UK and US; bolster cross-border investment; and support stronger economic growth and job creation for both countries.

“This is an important strategic opportunity for the US financial services industry to strengthen cross-border regulatory and supervisory cooperation between the United Kingdom and the United States,” said Kenneth E. Bentsen, Jr., president and CEO of the Securities Industry and Financial Markets Association (SIFMA). “We look forward to working with policymakers and regulators on both sides of the Atlantic on this moving forward.”

“In today’s economy, many barriers preventing cross-border trade and investment in financial and professional services are regulatory in nature. For our industry, achieving compatibility of regulatory standards is therefore essential to support growth on both sides of the Atlantic. A robust regulatory dialogue will help achieve this. It also presents an opportunity for the UK and the U.S. to work even more closely together in international regulatory forums to achieve shared priorities,” said Catherine McGuinness, Deputy Chair of TheCityUK, and Chair of Policy and Resources Committee for the City of London Corporation.

The paper examines regulatory cooperation in a trade agreement and the architecture for regulatory dialogue between officials and also between officials and BAFA. It also highlights significant areas where the FRWG can help deliver a forward-looking vision: market integrity, data transfer, FinTech, cybersecurity and operational resilience, prudential measures, market access barriers, global financial stability, market fragmentation, and audit and accounting.

About The British American Finance Alliance (BAFA)
The British American Finance Alliance (BAFA) is a coalition of 20 British and American trade associations and industry bodies representing both financial and professional services. It was formed in September 2018 as the UK-U.S. Financial and Related Professional Services Industry Coalition to ‘actively contribute to the overall trade and investment discussions between the UK and U.S. and offer specific industry input on issues such as the process underpinning the regulatory dialogue and its substantive priorities.’ BAFA day to day operations are co-supported by the Securities Industry & Financial Markets Association (SIFMA) and TheCityUK (TCUK).

Members of BAFA
Alternative Investment Management Association (AIMA), American Council of Life Insurers (ACLI), American Property and Casualty Insurance Association (APCIA), Association of British Insurers (ABI), Association of Chartered Certified Accountants (ACCA), Association for Financial Markets in Europe (AFME), Bankers Association for Finance and Trade (BAFT), Bank Policy Institute (BPI), British American Business (BAB), City of London Corporation, Coalition of Service Industries (CSI), Institute of Chartered Accountants in England and Wales (ICAEW), Investment Association (IA), Investment Company Institute (ICI), London Market Group (LMG), Re-Insurance Association of America (RAA), Securities Industry & Financial Markets Association (SIFMA), TheCityUK (TCUK), The Law Society of England and Wales, US Chamber of Commerce (USCC), UK Finance.

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

Follow us on Twitter: @BAFT
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On September 18, BAFT’s Board Chair, Mark Garfield, published his monthly communication to the wider BAFT membership.

Growing up reading science fiction and watching futuristic shows like Star Trek, people were transported in their personal flying machines and called each other using devices where they could literally see the other person…crazy stuff. I dreamed that one day I could fly around my neighborhood but instead waited in competition with my eight other family members to use one rotary dial telephone line. Today I met virtually with five speakers in preparation for BAFT’s upcoming Crystal Ball Series – Banking Outlook. The speakers resided in New York, Belgium, South Africa, India, and Washington, DC. Talk about space travel.

BAFT just wrapped up its first virtual conference for the 2020 MENA Bank to Bank Forum to a big success. More than 500 people and 200 institutions joined from 43 different countries to hear representatives from many industry sectors such as big-tech, fintech, pharma, travel, and hospitality. There were more participants than ever before at a BAFT MENA event. From wherever we sat, we heard valuable insights and opinions about the future of various industries, their challenges, and opportunities. It was a global classroom.

The irony in this time of isolation, distancing and stay-at-home routines, is that we are meeting and connecting more easily than ever before with people around the world. With my meetings today, I seemed to have traveled around the globe meeting industry leaders discussing both relevant and current topics. For someone that has spent his entire career in in-person meetings, this has been quite a transformation. As was stated in the 2020 Virtual MENA Bank to Bank Forum by various speakers, the speed and pace of change have increased at warp speed these past few months affecting all industries. The question becomes, how does our business adapt and grow in this time of rapid change?

I look forward to in-person meetings again. I miss cheering in a crowd of a football or rugby match, listening with others at the symphony and outdoor concerts, eating in a popular restaurant, and meeting with you at BAFT events. I will likely never pilot a personal flying machine, that’s probably a good thing, but I will still need to strap on and hold tight to stay current in this accelerated time of change.

Our next series of events, Around the Globe: The BAFT Crystal Ball Series begins September 29th. This program is organized to provide industry-specific information and insight to navigate our ever-changing and fast-paced world. You don’t want to miss it or you may find yourself left behind with a rotary phone and traveler’s checks in hand!

See you soon.

Mark Garfield
BAFT Chair
Head of Global Financial Institutions
Zions Bancorporation

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On September 8, BAFT released new criteria for payables finance principles developed by BAFT’s Global Trade Industry Council (GTIC).

WASHINGTON — BAFT, an international financial services association, today announced the publication of BAFT’s Global Trade Industry Council Payables Finance Principles to inform the industry on the payables finance supply chain finance product.

Members of BAFT’s Global Trade Industry Council (GTIC), which consists of heads of trade from 19 of the largest trade banks in the world, worked to codify a framework for articulating the essential criteria for use and structuring of payables finance, a financial product providing support for the global economy.

“The BAFT GTIC spent considerable time developing these principles to help those in the industry build strong, sustainable payables finance supply chain programs,” said Geoffrey Brady, MD, chair of the BAFT GTIC and head of global trade and supply chain for Bank of America.

Because payables finance is often misunderstood, the GTIC requested BAFT develop a working group of member experts to draft guiding principles designed not only to assist the international trade industry with a framework for delivering and building payables finance supply chain finance programs, but also to provide specificity to the rating agencies and other stakeholders to avoid confusing it with different supply chain finance programs.

“In the absence of written rules, these new payables finance principles provide a common framework for banks to structure their individual programs, while contributing  to a broader industry understanding of payables finance and its benefits,” said Tod Burwell, president and CEO, BAFT.

To read the full guidance document, visit our Library of Documents under the Industry Definitions and Guidelines section or click here.

About BAFT
BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft.org.

About the Global Trade Industry Council (GTIC)
The GTIC consists of global heads of trade from member banks including Bank of America, Bank of China, Barclays, BNP Paribas, BNY Mellon, Citigroup, Commerzbank, Deutsche Bank, First Abu Dhabi Bank, HSBC, J.P. Morgan, Lloyd’s Banking Group, MUFG, Santander Bank, Societe Generale, Standard Bank of South Africa, Standard Chartered Bank, UniCredit Group, and Well Fargo Bank.

BAFT Media Contact:
Blair Bernstein
[email protected]
+ 1 (202) 663-5468

Follow us on Twitter: @BAFT
Follow us on LinkedIn: BAFT