Trade Finance during the 2008–9 Trade Collapse : Key Takeaways

Trade finance matters for trade, and when financial markets and world trade collapsed three years ago, a shortage in trade finance was hailed as a possible culprit. Because of the potential for global repercussions, world leaders called on the international community to act swiftly to avoid a depression. Governments and international institutions intervened to mitigate the impacts of the crisis. Then the economy bounced back, and trade picked up. But what did we learn from the crisis? In retrospect, what role did trade finance actually play? Did the freeze in the financial markets cause the unprecedented drop in global trade in 2008-9? This note presents evidence on the role of trade finance during 2008-9 and highlights a few takeaways on the data and knowledge gap of trade finance and government interventions during financial crises.

Bibliographic Details

Main Authors:	Chauffour, Jean-Pierre, Malouche, Mariem
Format:	Brief biblioteca
Language:	English
Published:	World Bank, Washington, DC 2011-09-01
Subjects:	ADVERSE EFFECTS, AFFORDABLE COST, BANK INTERMEDIATION, BANKING REGULATIONS, BANKING SUPERVISION, BANKING SYSTEM, BANKING SYSTEMS, BANKS, CAPITAL BASE, CAPITAL REQUIREMENTS, CASH DEPOSITS, CASH FLOW, CASH RESERVES, CENTRAL BANKS, CHAMBER OF COMMERCE, COLLATERAL, COLLECTIVE ACTIONS, COMMERCIAL BANKS, COMMODITIES, COMMODITY, COMMODITY EXPORTS, COMMODITY PRICES, COST OF FUNDS, COUNTRY MARKETS, CREDIT AGENCIES, CREDIT AVAILABILITY, CREDIT LINES, CREDITWORTHINESS, CUSTOMER RELATIONS, CUSTOMER RELATIONSHIPS, DEFAULT RISK, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DEVELOPMENT BANKS, DIRECT FINANCING, DOMESTIC ECONOMIES, ECONOMIC INTEGRATION, ECONOMIC POLICY, ELIGIBILITY CRITERIA, EMERGING ECONOMIES, EMERGING MARKETS, ENFORCEMENT SYSTEMS, EXPORT CREDIT, EXPORT CREDIT INSURANCE, EXPORT FINANCE, EXPORT MARKETS, EXPORTER, EXPORTERS, EXPOSURES, FINANCE CONSTRAINTS, FINANCE CORPORATION, FINANCE INITIATIVE, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL MARKETS, FINANCIAL MEANS, FINANCIAL RESOURCES, FINANCIAL RISKS, FINANCIAL SECTOR, FINANCIAL SERVICES, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FOREIGN CURRENCY, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, FORMS OF CREDIT, GLOBAL ECONOMY, GLOBAL TRADE, GOVERNMENT ACTIONS, GOVERNMENT INTERVENTION, GOVERNMENT INTERVENTIONS, HOME COUNTRY, INCOME, INCOME LEVELS, INSURANCE, INTERNATIONAL BANKING, INTERNATIONAL FINANCE, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL TRADE, INVESTMENT FINANCE, INVESTMENT FUNDS, LACK OF ACCESS, LACK OF FINANCE, LETTERS OF CREDIT, LIQUIDITY, LIQUIDITY CRISIS, LOAN, LOCAL BANKS, LOCAL CURRENCY, LOW-INCOME COUNTRIES, MARKET FAILURE, MARKET SHARE, MARKET SHARES, MATURITY, MIDDLE-INCOME COUNTRIES, MISSING MARKETS, MONETARY FUND, MORAL HAZARD, MULTINATIONAL, NEW ENTRANTS, OUTPUT, PORTFOLIO, PORTFOLIO EXPOSURE, PORTFOLIOS, PRICE VOLATILITY, PRIVATE BANKS, PRUDENTIAL REQUIREMENTS, REAL SECTOR, RECESSION, REGIONAL DEVELOPMENT BANKS, REGIONAL TRADE, REGULATORS, RISK AVERSION, RISK MANAGEMENT, RISK PREMIUMS, SELF-FINANCING, SHARE OF WORLD TRADE, STRUCTURAL PROBLEMS, SUPPLY CHAIN, SUPPLY CHAINS, TRADE CREDIT, TRADE FACILITATION, TRADE FINANCE, TRADE FLOWS, TRADING, TRANSPARENCY, UNDERDEVELOPED FINANCIAL SYSTEMS, UNDERWRITERS, UNION, WORKING CAPITAL, WORLD ECONOMY, WORLD TRADE,
Online Access:	http://documents.worldbank.org/curated/en/2011/09/15165991/trade-finance-during-2008-9-trade-collapse-key-takeaways http://hdl.handle.net/10986/10077
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