Global Trade Finance Gap Widens to $1.7 Trillion on Covid-19

The video discusses the critical role of trade finance in global trade and highlights the challenges faced by SMEs, particularly women-led businesses, in accessing trade finance. It identifies factors such as economic recovery concerns and regulatory requirements that contribute to banks' reluctance to lend. The widening trade finance gap is a significant concern for global economic recovery. The video suggests that digitalization, standardization, and legislation could be long-term solutions to improve access to trade finance.

What percentage of trade finance applications were turned down in the ADB survey over 2020?

• 50%

• 40%

• 30%

• 20%

Which group is most affected by the trade finance gap according to the ADB survey?

• Large corporations

• SMEs led by men

• Government organizations

• SMEs led by women

What is one of the main reasons banks are hesitant to lend to companies?

• Excessive competition

• High interest rates

• Economic recovery concerns

• Lack of digital infrastructure

What structural change is suggested to improve access to trade finance?

• Reducing trade tariffs

• Hiring more bank staff

• Increasing interest rates

• Implementing digitalization

What is required to create a global digital standard for the trading ecosystem?

• Legislation and standardization

• Higher taxes

• More financial incentives

• Increased competition