New Delhi: Developing Asia, including India and China, had a trade finance gap of USD 692 billion in 2015, multilateral lending agency Asian Development Bank said today.
"The growth of the trade finance gap in 2015 continues to be a drag on trade, and small- and medium-sized enterprises are the most affected," Head of ADB's Trade Finance Program Steven Beck was quoted a saying in a statement.
In its new study '2016 Trade Finance Gaps, Growth, and Jobs Survey', ADB has quantified market gaps for trade finance and explores their impact on growth and jobs through a survey of over 337 banks in 114 countries and 791 firms in 96 countries.
The annual survey is now in its fourth year.
According to the report, trade finance gaps persist in part due to the cost and complexity of compliance with banking regulations, with 90 per cent of surveyed banks citing anti-money laundering and know-your-client requirements as impediments to their ability to expand trade finance, especially for small businesses.
The report notes small- and medium-sized enterprises (SMEs) face the greatest obstacles in accessing affordable trade financing.
"Globally, 57 per cent of trade finance requests by SMEs are rejected, against just 10 per cent for multinational companies. High rejection rates lead many firms to turn to inefficient informal financing," it said.