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Banks in Singapore to create digital trade finance registry

Tuesday 6 October 2020 14:13 CET | News

Singapore-based DBS Bank and UK-based Standard Chartered have announced the creation of a digital trade finance registry (TFR) in Singapore alongside 12 other banks.

 

The banks working in commodity trade financing are trying to mitigate the risk of trade fraud. They also want to boost transparency after losing billions of dollars due to a spate of defaults. Banks have reduced their commodities business in 2020 to cut risk following collapses.

In a joint statement issued on 6 October 2020, DBS and Standard Chartered said they are leading a group of 12 other banks in Singapore to create and conduct a secure central database for the banking industry to access records of trade transactions financed across banks here.

With this in place, banks will be able to conduct validations within a single customer entity, or across their individual banking network, with no view of what other banks have financed or undertaken payment obligation against.

The registry’s proof of concept is supported by Enterprise Singapore (ESG) and endorsed by The Association Banks in Singapore.


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Keywords: Singapore, DBS, Standard Chartered, trade finance registry, fraud, banking, Enterprise Singapore
Categories: Banking & Fintech
Companies:
Countries: Singapore
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Banking & Fintech