CONTENTS
1.  INTRODUCTION ..................................................................................................................... 1
2.  TRADE FINANCE IN ASIA-PACIFIC: MODALITIES, STATUS & CONSTRAINTS ........................................................................................................................ 1 2.1.   ASIA-PACIFIC INTERNATIONAL TRADE ........................................................................................ 1 2.2.   OVERVIEW OF TRADE FINANCE .................................................................................................... 2 2.3.   THE ROLE OF THE BANKING SECTOR AND OTHER ACTORS IN TRADE FINANCE ............................ 4 2.4.   MARKET SIZE OF TRADE FINANCE: GLOBAL AND REGIONAL ....................................................... 7 2.5.   USERS OF LETTERS OF CREDIT ..................................................................................................... 9 2.6.   FACTORING IN ASIA-PACIFIC ..................................................................................................... 10 2.7.   FORFAITING IN ASIA-PACIFIC .................................................................................................... 10 2.8.   GLOBAL VALUE CHAINS AND ASIA- PACIFIC SMES .................................................................. 11 2.9.   INTER-FIRM TRADE CREDIT ........................................................................................................ 14 2.10.    OTHER NEW NON-BANKING PRODUCTS ..................................................................................... 14 3.    AN ASSESSMENT OF TRADE FINANCE GAPS .............................................................. 15 3.1.   ICC- RETHINKING TRADE & FINANCE 2014 ............................................................................... 15 3.2.   ADB-TRADE FINANCE GAP, GROWTH, AND JOBS SURVEY ......................................................... 17 4.   EMERGING ISSUES AND CHALLENGES ....................................................................... 20 4.1.   INTRODUCTION ........................................................................................................................... 20 4.2.   IDENTIFYING THE MAJOR FACTORS AND CHALLENGES .............................................................. 21 5.    POLICY IMPLICATIONS AND RECOMMENDATIONS ............................................... 24 5.1.      IMPLICATIONS ............................................................................................................................ 24 5.2.   THE NEED FOR CHANGE OF FUTURE TRADE FINANCE ................................................................. 25 5.3.    POLICY RECOMMENDATIONS ..................................................................................................... 26 ANNEX 1.  DEFINITIONS OF THE TRADE FINANCE INSTRUMENTS IN VOGUE IN ASIA-PACIFIC ........................................................................................................................... 30 ANNEX 2.  TEN OF THE BEST SUPPLY CHAINS IN ASIA-PACIFIC .......................................... 32 ANNEX 3.   BANGLADESH CASE STUDY ...................................................................................... 33 REFERENCES  .................................................................................................................................... 35