Basel III Expected to Boost Trade Finance Costs in Europe

Large companies in Europe seen shifting some trade finance business to global banks.

Basel III regulations on bank capital are expected to increase the prices for trade finance in Europe. A survey by Greenwich Associates shows 80% of large European companies and 90% of companies in the FT 500 index expect prices for trade finance products and services to increase as a result of Basel III.

Greenwich says companies are also concerned about the availability of trade finance going forward in light of Basel III’s impact on banks’ capital and funding.

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