Asian Development Bank expands partnership with SMBC for Asia trade

Monday 15 April 2019 09:16 CET | News

The Asian Development Bank (ADB) and Sumitomo Mitsui Banking Corporation (SMBC) have signed an agreement to promote over USD 100 million of trade annually across Asia.

Under the agreement, ADB and SMBC will provide financing to support trade transactions in some of developing Asia’s more challenging markets.

The agreement is expected to finance more than USD 100 million in trade each year, which will help both importers and exporters in developing Asia. SMEs are expected to be the biggest beneficiaries.

Backed by ADB’s AAA credit rating, the TFP (Trade Finance Program) provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities.

In 2018, TFP grew almost 40% to support USD 6.2 billion in trade through 4,470 transactions. TFP complements its financial support with ‘knowledge products’, including a study that quantifies market gaps for trade finance, initiatives to increase the role of women in banking, efforts to enhance environmental safeguards, and initiatives to fight crime through greater transparency in the global financial system. TFP also provides workshops and seminars to increase knowledge and expertise in matters related to finance, trade, risk management, and fraud prevention.

Previous collaboration between SMBC and ADB has focused on supporting trade in Bangladesh, Pakistan, Viet Nam, and other countries in developing Asia.

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Keywords: Asian Development Bank, Sumitomo Mitsui Banking Corporation, Asia, trade finance, ADB, SMBC, TFP
Countries: World