Partnering with several other organizations, ABA’s trade finance subsidiary BAFT today joined in releasing a set of new standard definitions for techniques of supply chain finance. The new definitions will address a worldwide need for common terminology and techniques in supply chain finance.
With definitions and descriptions of eight identified core techniques, and using the “Bank Payment Obligation” as an enabling framework for supply chain finance, the standards are designed to provide clarity for finance providers; corporate, commercial and SME clients; investors; regulators; legal practitioners; IT and infrastructure providers; and other users.
“Supply chain finance has grown and evolved in recent years in response to shifts in corporate supply chains and the ever-growing demand for trade finance,” said BAFT President and CEO Tod Burwell, who was vice chairman of the Global Supply Chain Finance Forum Steering Group that oversaw the development of the definitions. “This publication should aid the market, regulators and other stakeholders in gaining clarity and consistency on the various terms and techniques used.”
