Banking industry undertakes project to standardize supply chain finance terminology

Monday 5 May 2014 09:12 CET | News

Five business associations have joined forces with the International Chamber of Commerce (ICC) Banking Commission to undertake a project to standardize market terminology for global supply chain finance products and services.

The newly formed group, dubbed Global Supply Chain Finance (SCF) Forum, seeks to clarify existing definitions and supply chain finance terminology and will be led by the ICC Banking Commission, Euro-Banking Association (EBA), Bankers Association for Finance and Trade (BAFT), Factors Chain International (FCI), International Factors Group (IFG) and the International Forfaiting Association (IFA).

Initial objectives of the Global SCF Forum include collecting all existing SCF nomenclatures developed to date by individual trade associations, which is set to map the efforts that have already been undertaken in the field and to define the typology of SCF products and services that fall under the terms of reference. Other objectives are to harmonize SCF existing market terminology – rendering it operational and usable in daily practice by banks and non-banks when processing, financing and risk mitigating trade transactions – and to ensure that the initiative provides a competitive platform for all market participants.

The six associations undertaking the project will conduct a series of non-binding, open consultations – including where appropriate corporates and end-clients – and aim to complete the set of recommended definitions within a twelve-month timeframe.

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Keywords: banking industry, project, supply chain finance, terminology, ICC, IFA, EBA, BAFT, FCI, IFG
Categories: Banking & Fintech
Countries: World
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Banking & Fintech

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