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Low default rates, increased flexibility, technological advancements and evolving regulations make standby letters of credit (SBLCs) an appealing option in international trade
The Bank of England reversed its plan to raise trade finance capital requirements from 20% to 50%, aligning with the EU approach but raising insurance-related requirements.
BAFT responds to US regulatory proposal "Basel Endgame" on capital requirements, emphasizing fair treatment for trade finance.
For the 24th consecutive year, the Institute of International Banking Law & Practice conducted its one-day Americas Letter of Credit Law Summit.
this has links to Feb 2023 DCW item on EU capital requirements
Proposed EU Capital Requirements Regulation changes may raise credit conversion factor for standby letters of credit. Limited data suggests low default rates. Banks issue standbys for fees, and despite credit risk, many expire unused.
According to published reports, the EU appears to be on a path for abandoning a planned tenet of Basel reforms
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