September 15, 2021 | Stamford, CT — The consequences of the COVID-19 crisis continue to impact the European trade finance industry as companies seek support and advice amid lingering disruptions in business operations, supply chains and trade flows.
The global pandemic cut global trade by about 5% in 2020, according to the World Trade Organization. In the midst of that reduction, however, demand for trade finance services was actually growing among large European corporates. That increase, which spanned services for trade both within Western Europe and around the world, reflects companies’ need for expertise and assistance with crisis-related conditions.
“Companies are not hesitating to reallocate business among trade finance providers to get the help they need,” says Dr. Tobias Miarka, Co-Head of Banking at Coalition Greenwich. “More than 40% of the large European corporates participating in the Coalition Greenwich 2021 European Large Corporate Trade Finance Study intend to shift business to or from individual trade finance providers in the coming year.”
In this environment, BNP Paribas drew on its robust international network and high-quality service to widen its lead over other providers in terms of market share among large European corporates. BNP Paribas tops the list of 2021 Greenwich Share Leaders in European Trade Finance, which also include UniCredit and HSBC. BNP Paribas also joins Santander as the 2021 Greenwich Quality Leaders.
Companies Work to Define ESG in Trade Finance
Large companies in Europe and around the world are embracing ESG standards for their businesses, and in terms of trade finance, companies’ initial focus is centered on sustainable finance. The share of large European corporates naming “expertise in sustainable financing” as a key factor in their selection of trade finance provides jumped to 16% in 2021 from just 3% in 2019. Providers should be proactively engaging with advice and ideas on the topic of ESG in trade finance.
Click here for the complete list of 2021 Greenwich Leaders in European Trade Finance.