FILE PHOTO: A view of the logo of HSBC bank on a wall outside a branch in Mexico City, Mexico June 14, 2024. REUTERS/Henry Romero/File PhotoHONG KONG : HSBC and the World Bank's International Finance Corporation will jointly provide funding to trade transactions valued at up to $1 billion, in a move to help fill a gap in financing for emerging market trade.
The deal aims to support cross-border trade and bolster exports in critical industries as economies face geopolitical tensions and trade barriers that could create uncertainty for supply chains and threaten economic growth. Demand for trade finance far outpaces supply, especially in emerging markets, with the global trade finance gap last estimated at $2.5 trillion, according to a report from the Asian Development Bank.