Current Issues


We serve as the industry’s voice before multilateral agencies, export credit agencies, finance ministries, central banks and legislative bodies. We collaborate around the world with other industry groups and trade associations. As a member of BAFT, we represent you in continually striving to:

  • develop international standards such as the “Master Participation Agreement” for trade risk
  • support the “national treatment” of financial firms in the markets where they do business
  • promote the harmonization of financial services regulation and supervision between countries
  • coordinate with private and public sector stakeholders to ensure that governments, multilateral agencies, and leading policymakers around the globe have substantive feedback and reliable data on market dislocations and industry trends
  • Advocate for the positive consideration of trade finance and transaction banking under the Basel capital and liquidity framework
  • Use common Trade Finance Definitions to standardize industry/regulatory terminology and facilitate prioritization of trade risk in sovereign events
  • Ensure the continuation of benefits afforded companies via ECA financing

Policy News

BAFT submits letter to Basel Committee on Banking Supervision outlining price and capital impacts of Basel III proposals

by Patrick Devilbiss | Nov 21, 2016
BAFT submitted a letter to the Basel Committee on Banking Supervision reiterating its belief that, if left unchanged, the Basel III proposals outstanding would be highly detrimental to trade finance. Read the Letter

On November 17, 2016, BAFT submitted a letter to the Basel Committee on Banking Supervision reiterating its belief that, if left unchanged, the Basel III proposals outstanding would be highly detrimental to trade finance.  BAFT highlighted recent work from Oliver Wyman which shows that lending will decrease 2.6% with every 1% increase in capital ratios.  Further, modeling shows that, for trade finance, capital requirements will increase by around 36%, and pricing will need to increase an estimated 60%-100% depending on the product.  As the Basel Committee wraps up its work related to the Basel III package of reforms, BAFT urges the Committee to modify the proposals to avoid these potentially calamitous effects.

Read the Letter