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-IFSA APPLAUDS RECOGNITION OF TRADE FINANCE IN BASEL III LEVERAGE RATIO REVISION

    by Tod Burwell | Jan 16, 2014

    “We commend the Basel Committee for adopting the final calibration of the Basel III leverage ratio, recognizing how important trade finance is to economic growth. Amendments on the treatment of off-balance sheet trade finance instruments recognize the intrinsically safe nature of these products and their importance to companies, consumers and job creation. Through this agreement, the Basel Committee has taken significant steps to ensure trade finance remains available and affordable to importers and exporters."

    “This is a positive outcome for the real economy, and we recommend that amendments supporting the growth of international trade be swiftly adopted in member jurisdictions around the world.“

    # # #

    Click here to read BAFT-IFSA’s comment letter on the Basel III leverage ratio.

     

    BAFT-IFSA, the leading global financial services association for international transaction banking, provides a forum for analysis, discussion and advocacy amongst international financial institutions and industry suppliers on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft-ifsa.com.

  • BAFT-IFSA Hosts Federal Reserve Bank Call on FRB Consultation Paper

    by Patrick Devilbiss | Oct 29, 2013

    BAFT-IFSA hosted a call on Monday afternoon, October 28, 2013 with Ken Isaacson of the Federal Reserve Bank to highlight key issues in the FRB consultation paper: “Payment System Improvement”. Fifty BAFT-IFSA members attended the call. The Fed is seeking responses to questions posed in this paper by  December 13, 2013. BAFT-IFSA facilitated the call to  encourage member banks to review the paper and respond to the Fed on:

    • The Federal Reserve Banks’ perspectives on gaps, opportunities, and desired outcomes articulated in this paper;
    • Potential strategies and tactics to shape the future of the U.S. payment system; and
    • The Federal Reserve Bank’s role in implementing these strategies and tactics.

     Click here to access the paper


    Click here to access the Fed’s Consultation Paper Overview
  • BAFT-IFSA Submits Leverage Ratio Response to US Agencies

    by Patrick Devilbiss | Oct 24, 2013

    Earlier this week, BAFT-IFSA submitted a comment letter on the Leverage Ratio proposed rule making to the US Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation. The full comment letter can be read here.

  • BAFT-IFSA and IIF Submit a Joint Intraday Liquidity Letter

    by Patrick Devilbiss | Oct 16, 2013
    Click here to review the recently submitted BAFT-IFSA IIF Intraday Liquidity Letter
  • BAFT-IFSA Highlights Trade Finance Impact from Basel III Leverage Ratio

    by Patrick Devilbiss | Oct 01, 2013

    On September 20, BAFT-IFSA issued its response to the June 2013 Basel Committee consultation on a revised Basel III leverage ratio calibration. The letter emphasized the need to adjust the credit conversion factors (CCF) for trade finance instruments to avoid potential unintended consequences emanating from the proposal for downstream clients of financial institutions.
    Click here to read the paper