Scariest Trade Credit Risk: Price Hikes

The Scream, by Edvard Munch (1893)With the West facing the prospect of a double-dip recession, growth will depend to a large extent on the ability of banks to lend. In its current guise, the new Basel Accord will greatly impact banks’ funding costs, hiking up the cost of trade credit and undermining cross-border business – potentially resulting in a new liquidity crisis. The score is currently: Basel III; Exporters Nil.

This post was part of the special feature about Our Scariest Risks, published October 31, 2011. The feature also included these other risks:
Aerospace
Captive Insurance
China
D&O
Employee Benefits
Energy
Environmental Liability
ERM
Financial Services
FINEX
Global
Health Care
Middle East
Mining
Power
Real Estate
Reinsurance
Renewables
Supply Chain
Terrorism
Trade Credit

About Andrew Van den Born

Andrew is an Executive Director of the Financial Solutions division, specializing in the structuring and placement …
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