Trade Finance and SMEs: Bridging the Gap in Provision

Dec 31, 2016 | World Trade Organization (WTO) | WTO

The availability of trade finance is often cited by businesses around the world - particularly SMEs - as a major barrier to their capacity to trade. This report looks at these issues in detail. It brings together recent surveys and research to highlight the scale of the gaps in trade finance provision, it considers the actions that are currently being taken on this front, and it outlines some potential future actions. Such actions could include: enhancing existing trade finance facilitation programmes; helping local banking sectors to grow by improving training programmes;better monitoring of problems with provision;and maintaining a closer dialogue with regulators. The report suggests that setting specific targets could be an effective way of mobilising and coordinating efforts towards closing the gaps in provision.