FUEL YOUR BUSINESS IDEAS
INTO TRUE FINANCIAL SOLUTIONS

TURN BANKS’ CAUTIOUS ATTITUDE
TOWARDS DIVERSIFIED INVESTMENT OPPORTUNITY

INTRODUCTION

Since the 2008 financial crisis, big banks largely involved into financing the international commodity trade flows are facing a new paradigm:
∙ Basel III requirements allow for less leverage thus less lending
∙ Pressure on margins leads to favoring (big) profitable players
∙ Negative social perception of the financial industry

Consequently, small to mid-size and new players facing increased difficulty to access capital via the “traditional” banking channel and develop their business through new requirements:
∙ Large deposits (equity covenants) as a prerequisite to start a new relationship
∙ Increased compliance requirements limit interest to develop new small to mid-sized clients
∙ Increased participation asked to the client under margin co-financing.