ICC BANKING COMMISSION

11/04/2019 | Buenos Aires

POLICY AND BUSINESS PRACTICES

The International Chamber of Commerce (ICC) is the

world’s largest business organization promoting

international trade, responsible business conduct and a

global approach to regulation. In 2017, ICC was granted

Observer Status at the United Nations General Assembly

(UNGA), the first time a private sector organization has been

admitted formally into the United Nations system.

The ICC Banking Commission serves as a global forum and rule-

making body for banks worldwide, with particular focus on the

financing of international trade. It further aims to help policy-makers

and standard setters create a regulatory framework that facilitates

trade finance throughout the world.

With 85 years of experience and more than 600 members, the ICC

Banking Commission has rightly gained a reputation as the most

authoritative voice in the field of trade finance.

WHO WE ARE

Global ICC National Committee representation

POLICY AND BUSINESS PRACTICES

ICC BANKING COMMISSION STRATEGY 2020

Rule-making

Be the authoritative rule-making body and produce

accepted standards and guidelines for all forms of trade

finance

1. Update ICC rules according to market needs and extend ICC standards into all trade finance areas

2. Advance digitalisation by identifying and supportinginnvoation in trade finance

Advocacy

Support the development of a sound financial system

and serve as trusted industry leader for regulators

1. Ensure equitable regulatory treatmentof trade finance as low risk asset class

2. Support establishment of effective financial crime risk management standards

Financial Inclusion & Sustainability

Integrate “unbankable” regions and segments into the

global financial system

1. Collaborate with partners around the globe and promote membershipdiversity

2. Encourage and provide guidance on sustainable practices

Our mission: “Safety, Stability, Growth”

POLICY AND BUSINESS PRACTICES

•Advises on development and execution of goals and strategy

•Guides prioritization of the commission’s work programme

•Advises on new partnerships and opportunities for industry engagement

AdvisoryBoard

•Executes work programme and strategy

•Provides subject matter expertise

•Determines goals of regulatory engagements and industry initiatives

ExecutiveCommittee

•Fosters collaboration with other ICC Commissions and drives partnerships with relevant industry bodies and organizations

•Serves as commission’s operational arm, organizes biannual meetings

•Manages and publishes ICC Trade Register and ICC Global Report

ICC Headquarters

in Paris

ICC BANKING COMMISSION GOVERNANCE

POLICY AND BUSINESS PRACTICES

TASK FORCES & WORKING GROUPS

•Digitalisation Michael Vrontamitis (Standard Chartered)

•Forfaiting Sean Edwards (SMBC)

•Guarantees Andrea Hauptmann (Raiffeisen Bank International)

•Supply Chain Finance Forum Christian Hausherr (Deutsche Bank)

Rule-making

•Regulatory Capital Advocacy Henri d’Ambrières (HDA Conseil)

•Global Export Finance Forum Jonathan Joseph-Horne (SMBC)

•Financial Crime Risk and Policy Graham Baldock & Graham Finding (HSBC)

• ICC Trade Register Krishnan Ramadurai (HSBC)

•Legal Committee Georges Affaki (Affaki Société d’Avocats)

•Wolfsberg Principles Guidance Drafting Group Willem Toren (Standard Chartered)

Advocacy

•B20-G20 Policy Consultation Steven Beck (ADB) & Alexander Malaket (Opus Advisory)

•Market Intelligence Alexander Malaket (Opus Advisory)

•Sustainable Trade Finance Ruediger Geis (Commerzbank) & Harriette Resnick

Financial Inclusion & Sustainability

The work of the ICC Banking Commission is executed through dedicated task forces and working groups.

POLICY AND BUSINESS PRACTICES

ICC BANKING COMMISSION RULES AND GUIDELINES

Forfaiting Supply Chain Finance Guarantees Digitalisation

Serve as representative body

for banking experts in export

financing and facilitate

standardization and harmonization

of processes and regulations

Develop Standard Definitions for

Techniques of Supply Chain

Finance and provide additional

guidance to address the global need

for a common understanding of

terminology, nomenclature and

techniques related to SCF

http://supplychainfinanceforum.org/

Promote the wider use of the

Uniform Rules for Demand

Guarantees (URDG) in all

business sectors and

geographical regions

Evaluate and ensure “e-

compatibility” of ICC rules, i.e.

enable banks to accept data vs.

documents

Develop a set of minimum

standards for digital connectivity of

service providers

Conduct a legal survey to

understand the rights of third parties

under paper vs. electronic bills of

lading and provide rules regarding

the acceptance of data vs.

documents

Used by letter of credit practitioners worldwide, the Uniform

Customs and Practice for Documentary Credits (UCP) are

the most successful private rules for trade ever

developed. Bankers, traders, lawyers, transporters and

academics refer to UCP 600 on a daily basis.

Task Force and Working Groups

POLICY AND BUSINESS PRACTICES

Global Export Finance Forum Financial Crime Risk and Policy Sustainable Trade Finance

Serve as representative body for

banking experts in export financing

and facilitate standardization and

harmonization of processes and

regulations

Monitor regulatory developments

in relations to financial crime

aspects and evaluate possible

consequences for the trade finance

industry

Identify certification schemes and standards that

effectively mitigate risks associated with clients’

business and transactions to be financed

Develop training modules that promote

sustainability policies and practices by banks and

their customers.

Legal Committee Regulatory Capital Advocacy

Discuss, analyse and provide

guidance on recent legal

developments in relation to trade

finance and bank regulation

Monitor regulatory developments

and their consequences and draft

industry comment letters

ICC BANKING COMMISSION POLICY ADVOCACY

Regulatory and Policy Advocacy GroupsFinancial Inclusion & Sustainability

POLICY AND BUSINESS PRACTICES

ICC National Committee based in the location of the initiator forwards

request to Secretariat

Secretariat relaysrequest to Technical

Advisors

Technical Advisorsissue Draft Opinion –

sent to initiator via National Committee

Consolidated DraftOpinions are circulated

for comment to all National Committees

Draft Opinions are discussed and approved at the

Banking Commission bi-annual meetings

Final Opinions are circulated to all

National Committeesand commission

members

SERVICES: BANKING COMMISSION OFFICIAL OPINIONS

• Opinions provide expert interpretation and analysis of the ICC rules in given situations. Official Opinions are given in respect of transactions

subject to ICC Rules such as the UCP, URC, URDG, URBPO etc. They are often cited by courts to assist in dispute resolution and are

considered a major resource for lawyers, bankers, judges, and scholars and other professionals in the industry.

• Opinions are issued with the support of the Technical Advisory Team.

POLICY AND BUSINESS PRACTICES

ICC TRADE REGISTER

The ICC Trade Register – an unparalleled way to measure global risk in trade and export finance

facilitated by ICC and the world’s leading banks

22

banks22

banks

20 million

transactions

Exposure

> USD 10

trillion

40% of

global

traditional

trade

finance

Provides objective and transparent view of the credit risk profile and

characteristics of trade, supply chain and export finance whereby

contributing to informed policy and regulatory decisions.

Members have access to high-quality up-to-date data on trade, supply

chain and export finance, which can be incorporated as an integral

component of annual credit risk factor reviews and model calibration for

trade finance.

Aims to deliver a common understanding of the international

regulations affecting bank capital requirements for trade and export

finance as part of the ICC’s commitment to effective and collaborative

advocacy.

POLICY AND BUSINESS PRACTICES

ICC GLOBAL SURVEY ON TRADE FINANCE

Conducted annually since 2008, the ICC Global Survey report is the world’s most authoritative review of the trade finance industry,

based on exclusive information from over 250 banks in more than 90 countries.

The survey results are bolstered by contributions

from an international array of leading voices on

trade and finance, including experts from the

World Bank, the Boston Consulting Group (BCG)

and the World Trade Organization.

To access the full reports, click on the respective covers

POLICY AND BUSINESS PRACTICES

BANKING COMMISSION MEETINGS

Twice a year, the ICC Banking Commission brings together bankers,

business leaders, finance experts, lawyers and representatives from

international organizations to promote dialogue, make policy

recommendations, and develop rules to enhance trade finance

practices throughout the world.

+250 participants TechnicalMeeting

everyspring and

autumn+500

participants AnnualMeeting

+65 countries

represented

POLICY AND BUSINESS PRACTICES

ICC BANKING COMMISSION

https://iccwbo.org/global-issues-trends/banking-finance/

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