Trade finance is one of the safest forms of lending.. Yet proving that fact to regulators, boards, and even internal colleagues doesn’t seem to be so straightforward.. The ICC Trade Register exists to solve exactly that challenge..
Created after the global financial crisis, the ICC Trade Register is a joint industry initiative that gathers anonymised performance and default data from trade finance providers worldwide..
It has become a unique and respected lens through which the industry can view the real risk profile of trade finance products, from letters of credit and guarantees to supply chain finance and receivables purchase..
Despite its credibility and value, engagement from banks, especially regional institutions and mid-tier players, remains low.. That is a missed opportunity for the entire trade ecosystem..
This article explores why the Trade Register matters, what it offers, and how greater participation can unlock better access to finance for businesses of all sizes..
What exactly is the ICC Trade Register..??
The ICC Trade Register is administered by the International Chamber of Commerce and updated annually.. The register is an aggregation of anonymous data on operational performance, defaults, and recoveries across product types, countries, and industries based on contributions from participating banks..
The data is aggregated and anonymised to ensure confidentiality while still delivering statistically meaningful insights..
Over the years, the Register has reinforced a consistent narrative.. Trade finance defaults are low, recovery rates are high, and even during times of economic stress, trade products have shown resilience..
These insights underpin advocacy efforts that argue for fair capital treatment for trade finance under regulatory frameworks such as Basel..
In simple terms: without this dataset, regulators would rely more on assumptions.. With it, the conversation is grounded in real evidence..
Why the Trade Register matters
- It strengthens the case for supportive regulation
Capital requirements influence how much trade finance a bank can offer.. If regulators assign disproportionately high-risk weights, banks constrain their books or increase pricing..
When the Register demonstrates that trade finance exposures perform well even in volatile markets, it becomes a powerful tool for industry advocacy and regulatory engagement..
Better capital treatment means more capacity and better pricing, especially for SMEs that are often left behind..
- It enables benchmarking and better portfolio decisions
Banks do not want to operate blindly.. Peer data helps them
- understand where their risk sits relative to the industry.. Are their default rates higher than average
- are they too concentrated in one region or sector
- should they lean more into receivables finance or
- reconsider their open-account strategy..
The Register delivers that context, helping banks allocate capital with greater confidence..
- It brings transparency to corporates and policymakers
Trade finance can seem opaque, particularly for SMEs that do not yet understand the differences between products..
The Register helps demystify the risk and performance characteristics of these instruments and shows that trade finance is not ancient or dangerous.. It is secure, monitored, and proven..
This can empower businesses to negotiate better financing terms and encourage governments to promote trade finance adoption as a growth enabler..
- It captures structural change in global trade
Trade is evolving.. New corridors are rising in Asia and Africa.. Receivables finance is gaining prominence.. More transactions are moving digital.. Product mixes are shifting..
The Register tracks these trends over time, giving the industry an empirical view of where trade is heading, not just where it has been..
Challenges with the Trade Register
Despite the benefits of the ICC Trade Register, at the ICC Academy‘s recent Supply Chain Finance Summit, Tomasch Kubiak, ICC’s Policy Manager, is of the view that there are many challenges in compiling, distributing, and sharing the ICC Trade Register..
Engagement
- Hesitation by many banks to submit data, presumably, because it requires effort and coordination between risk and operations teams
- Smaller banks may believe the Register is more useful for global institutions
- Some do not fully recognise the direct commercial value of participation
- Confidentiality fears, even though the data is fully anonymised
Internal sharing
- To facilitate smoother communication, the ICC Trade Register team communicates with designated channels within various banks and financial institutions.
- Based on the questions and information requests received from “others” in the banks and financial institutions and based on the interactions at events and conferences, it is clear that the information in the Trade Register is not being shared internally, even within the contributing banks..
“I would like to encourage those who receive the ICC Trade Register to further disseminate the valuable information contained in the Register within the subscribing organisation,” said Kubiak..
“The register has a lot of valuable information which can greatly assist the marketing and sales teams and trade finance teams to understand what is really happening in the market and how they can further assist customers in the trade finance space,” added Kubiak..
Collaboration & Diversification
Kubiak also called on banks and financial institutions to “have an open discussion with your ICC branch and contribute to the banking trade/finance data set, which will have a big impact in improving the quality of data and the financial value to the industry.”
Kubiak further indicated that the ICC Trade Register is open to collaboration with other industry stakeholders like Chambers of Commerce, Export Councils, Customs and Ports, as trade data is collected by all these agencies and can be correlated with the information from the banks, providing a complete picture for the industry..
A call to action for the trade ecosystem
The Register’s value increases only when participation grows.. Here is how different players can benefit through deeper involvement:
Banks
- Gain robust evidence to support internal approvals and regulatory negotiations
- Improve competitiveness by benchmarking product performance and exposure mix
- Build trust with clients through transparent risk intelligence
Corporations and SMEs
- Understand why financing costs differ across products
- Use the Register data to negotiate terms and forecast supply chain risk
- Strengthen board-level conversations around trade finance strategy
Policymakers and Export Agencies
- Make informed decisions to improve access to trade finance for smaller businesses
- Monitor emerging risk patterns in markets critical for economic growth
A stronger future for trade finance
Global trade is facing geopolitical uncertainty, supply chain realignment, and rising protectionism..
In such a world, banks need confidence to keep financing cross-border commerce.. That confidence comes from verified data, continuous benchmarking, and collective participation..
The ICC Trade Register is already one of the most comprehensive datasets in trade finance.. The more data we share, the stronger the story becomes.. And the stronger the story, the more capacity the industry has to support real economic growth..
