In recent years, banks have been closely watching to see if regulators in the EU, UK, and US would impose higher capital requirements on trade finance products like standby letters of credit and guarantees.

In a significant win for trade finance providers, the Bank of England has recently abandoned its proposal to raise capital requirements for key trade instruments. The decision came after the Bank received compelling data indicating that the original plans were overly conservative.

On the latest episode of the GTR News Brief, senior reporter Jacob Atkins discusses why the central bank took this decision and the implications for the trade finance sector.

Since late last year, Houthi rebels in Yemen have been escalating their attacks on commercial shipping routes in the Red Sea, firing Iranian designed anti-ship missiles and launching drone strikes on vessels carrying goods between Europe and Asia.

The number of container ships in the region plummeted in December, as shipping companies opted to use the much longer – and more expensive route – around the Cape of Good Hope.

Initially, and despite the growing risks, oil and gas tankers continued to use the Red Sea corridor.

But in recent weeks, this has all changed, with the number of vessels carrying crude or petroleum products having dropped to almost zero in the region, in the wake of ongoing Houthi assaults.

In today’s episode, GTR senior reporter, John Basquill, provides an update on the Red Sea crisis and explains the potential ramifications, both direct and indirect, for the commodities trading sector.

Host Felix Thompson is joined by senior reporters John Basquill and Eleanor Wragg, as well as reporters Jacob Atkins and Jenny Messenger, to discuss some of the most-read articles on the GTR news site this year.

Insurance-related court disputes, the impact of Basel requirements on the trade finance industry, efforts to ban fossil fuel support within the OECD Arrangement on Officially Supported Export Credits and the demise of yet another digital trade consortia, all feature in our 2023 review.