Appendix C Survey Instruments

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1 Appendix C Survey Instruments On September 5, 2012, IEG sent a survey questionnaire to 216 issuing banks and 227 confirming banks in IFC s GTFP network. Seventy five issuing banks (35 percent of the total) and 30 confirming banks (13 percent) responded. Responding banks accounted for 35 percent of active GTFP issuing banks (those that used the program for 10 or more transactions in ) and 22 percent of active GTFP confirming banks. The issuing banks that responded accounted for 39 percent of the GTFP dollar volume since 2006 and the confirming banks that responded accounted for 45 percent of the GTFP s dollar volume since A. Survey of Confirming Banks SECTION I. Background Information 1. Name of Institution Your Location (City, Country) 2. Your headquarters is located in (City, Country) 3. You are reporting for: Headquarters reporting for all locations Headquarters reporting for Headquarters location activity only Subsidiary or Branch reporting for subsidiary or branch only. 4. Geographical Activity in Emerging Markets. Please rank 1 6 the regions your location is most active in trade finance. #1 would be most active. If you are not active in a region, do not give it a number. Africa (sub-sahara continent) East Asia and Pacific Eastern Europe Central Asia Latin America and the Caribbean Middle East and North Africa South Asia (Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka) 5. What are the major obstacles to expanding your trade finance business in emerging markets? 6. What are the risk mitigating techniques do you commonly use? Please rank in order of importance: (1 is most important. Do not assign a number if you do not use it) Cash Collateral IFC s GTFP program Investor-based risk sharing Other Multilateral Development Bank(s). Please Name Private insurance Unsecured Other. Please explain 7. To what extent were your institution s trade finance transactions in emerging markets affected by the global financial crisis? Large increase Moderate increase Not significantly affected Moderate decrease Large decrease Please explain: 95

2 SECTION II: Your Institution s Participation in the IFC s GTFP 8. Does your institution use IFC s Global Trade Finance Program? Yes No If no, please state reasons why your institution does not use the IFC GTFP: 9. If you do not use IFC s GTFP, please go directly to Question How did your relationship with IFC begin? Initiated by IFC Initiated by your institution By another party. Please explain (client, consultant, referral, and so forth) Unknown 11. Does IFC s GTFP influence your decisions on entering new countries? Please comment 12. Does IFC s GTFP influence your decisions on adding new banking relationships? Please comment 13. Has IFC s GTFP program helped you do transactions that would not have otherwise taken place? Please explain If yes, please estimate approximately how many transactions per year? 14. Do you use IFC s GTFP program in transactions that you would undertake anyway even without the GTFP guarantee? Please explain _ If yes, please estimate approximately how many per year? 15. Has IFC s GTFP program helped you increase the financial volume of emerging market trade finance transactions processed by your institution? If yes, please estimate by approximately what percent a year? 16. In general, has IFC s pricing for trade finance guarantees under the GTFP been: Below market average At the market average Above market average Other Please Explain: 17. What is the impact on your margin or profitability of a transaction using IFC s GTFP? GTFP increases margin on a transaction GTFP reduces margin on a transaction GTFP has a neutral influence (does not increase or decrease margin) 18. Has IFC s GTFP helped increase your network of trade finance counterpart banks in emerging markets? If yes, please estimate how many new counterpart bank relationships have been established as a result of IFC s program? or more 19. Has your institution added clean lines in emerging markets as a result of the IFC s GTFP? If yes, please estimate how many lines were added as a result of IFC s GTFP 20. Has your institution increased your clean line limits in emerging markets as a result of the IFC s GTFP? 96

3 If yes, please estimate how many lines were increased as a result of IFC s GTFP 21. What impact did IFC s GTFP play in helping your institution maintain its trade finance volume with emerging markets after the onset of the global financial crisis? Had limited or no impact Had a moderate impact Had a significant impact. Please explain: 22. Is IFC s GTFP competing with your institution in the provision of trade finance in emerging markets? No Yes If yes, how? 23. If IFC s GTFP program did not exist, what would be the main impact on your trade finance business in developing countries? 24. If your institution has confirmed trade transactions in new countries as a result of IFC s GTFP, please estimate how many countries: Please name the countries if possible: 25. Please rate IFC s performance in processing of your institution s guarantee requests: Performance IFC handles your transactions accurately agree Agree Disagree IFC is flexible in responding to your requests IFC is timely in responding to your requests IFC completed your transaction within the agreed time limits SECTION III: Summary Questions 26. What are the primary benefits to your institution in participating in IFC s trade finance programs? 27. What would you say are the main strengths of IFC s GTFP in order of importance? 28. What would you say are the main weaknesses of IFC s GTFP in order of importance? 29. What changes do you suggest that IFC make to improve the GTFP? 97

4 SECTION IV. Trends in Your Institution s Trade Finance Business 30. Data on your Location s (as identified by you in Question #3) trade finance activities. Please complete as much of the below table as possible. If actual numbers are not available, please use your best estimate. What is Your Fiscal Year: Start Month End Month Data for fiscal year What is the approximate number of trade finance transactions 1 undertaken in emerging markets 2 in each year? What is the approximate volume in US$ Millions for trade finance transactions 1 undertaken in emerging markets 2 each year? How many emerging market countries 2 does your institution do trade finance transactions 1 with? How many emerging market financial institutions 3 does your institution work with? 2012 (January 1 To date) How many emerging market financial institutions 3 do you extend advised (uncommitted) clean trade finance lines 4 to? What is the total US$ amount of these advised (uncommitted) clean trade finance lines? Notes: 1. Trade Finance Transactions are those transactions eligible for GTFP coverage: Private sector Import letters of credit and standby letters of credit, as well as the obligation of the issuer of performance bonds, bid bonds, and advance payment guarantees; the obligation of the issuer of a financial instrument for trade financing on-lent to its clients using instruments such as promissory notes, standby LC, or credit guarantees in favor of participating confirming banks that provide funds to the issuing bank; trade finance credit from confirming banks, which supports LC bill discounting or negotiation, bankers acceptance financing, pre-export or post-shipment financing, and post-import financing on a trade asset portfolio or for individual trade transactions, suppliers credits for the import of capital goods. 2. Emerging Markets: Non-OECD countries. 3. Emerging Market Financial Institutions: Financial Institution located in an emerging market. 4. Clean trade finance lines: trade finance transaction without collateral or third-party guarantee. 98

5 B. Survey of Issuing Banks SECTION I. Background Information 31. Name of Institution Location (City, Country) 32. Your headquarters is located in (City, Country) 33. You are reporting for: Headquarters reporting for all locations Headquarters reporting for Headquarters location activity only Subsidiary or Branch reporting for subsidiary or branch only 34. Do you do business with other emerging market countries? If so please rank the regions by importance. #1 would be most active. If you are not active in a region, do not give it a number. Africa (sub-sahara continent) East Asia and Pacific Eastern Europe Central Asia Latin America and the Caribbean Middle East and North Africa South Asia (Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka) 35. To what extent were your institution s trade finance transactions affected by the global financial crisis? Large increase Moderate increase Not significantly affected Moderate decrease Large decrease Please explain: SECTION II. Your Institution s Participation in the GTFP 36. Does your institution use IFC s Global Trade Finance Program? Yes No If no, please state reasons why your institution does not use the IFC GTFP: 37. How did your relationship with IFC begin? Initiated by IFC Initiated by your institution By another party. Please explain (client, consultant, referral, etc.) Unknown 38. What are the main reasons you decided to become part of IFC s GTFP? Please list in order of importance: 39. Does your institution have any other relationship with IFC other than the GTFP? IFC has an investment in this institution IFC provides advisory services (training, consulting, etc.) to this institution Other relationship with IFC No other relationship with IFC Uncertain 40. How would you describe the efficiency of IFC s appraisal process in approving your institution for participation in the GTFP? 99

6 Detail agree Agree Disagree The application was easy to complete The amount of information you were asked to provide was reasonable IFC was responsive in resolving issues The application was approved in a reasonable amount of time SECTION III. Role of IFC s Trade Finance Program 41. Has IFC s GTFP program helped increase the number of trade finance clients you have? If Yes, please estimate the number of trade finance clients you had each year: 42. Has IFC s GTFP program helped you add new trade finance products? 43. Has IFC s GTFP program helped increase the number of trade finance transactions processed by your institution? If yes, please estimate by approximately how many: 44. Has IFC s GTFP program helped increase the financial volume of trade finance transactions processed by your institution? If yes, please estimate by approximately how much: 45. If the IFC GTFP program were to expand, would you want to do more business in Import LC Guarantees Export financing Other (please explain) 46. Has IFC s GTFP program helped you do transactions that you would not have done without the program? Please explain why If yes, please estimate approximately how many transactions per year? 47. Have you used IFC s GTFP program in transactions that you would have done anyway even without the GTFP guarantee? Please explain why If yes, please estimate approximately how many per year? 48. In general, has IFC s pricing for trade finance guarantees under the GTFP been: Below market average At the market average Above market average Other Please Explain: 49. Has IFC s GTFP program helped increase the overall profitability of your trade finance business? 50. What is the impact on your margin or profitability of a transaction using IFC s GTFP? 100

7 GTFP increases margin on a transaction GTFP reduces margin on a transaction GTFP has a neutral influence (does not increase or decrease margin) 51. Has IFC s GTFP program helped increase the number of relationships your institution has with foreign banks? If Yes, please estimate by how many in each year: 52. Has IFC s GTFP program helped you receive more competitive pricing from Confirming Banks? Please explain 53. Has IFC s GTFP program helped you access longer trade financing tenors from Confirming Banks? 54. Has IFC s GTFP program helped reduce cash collateral requirements from Confirming Banks 55. Has IFC s GTFP program helped you attract a higher total available amount under clean credit lines from banks? Clean trade finance lines are lines of credit for which you do not post cash or other collateral such as third-party guarantees. If yes, please estimate by how much: (in US$) 56. What impact did IFC s GTFP program have in helping your institution maintain its trade finance business after the onset of the global financial crisis? Had limited or no impact Had a moderate impact Had a significant impact Please explain: 57. Please rate IFC s performance in approving and processing of your institution s guarantee requests: Performance agree Agree Disagree IFC handles your transactions accurately IFC is flexible in responding to your requests IFC is timely in responding to your requests IFC completed your transaction within the agreed time limits SECTION IV: Advisory Services Provided by IFC: 58. Have you received formal Advisory Services (training, consultants, etc.) from IFC? 59. If yes, what type of training/ consultancy has your bank received from the IFC? Basic training, introduction to trade finance specific to your bank Advanced training specific to your bank Seminars Consultancy services Internet/computer based training Other. Please describe: 60. If you have received IFC training and consulting services please complete the table below: Results of IFC training and consulting Trade finance transactions in your institution are processed with a higher degree of accuracy due to IFC training agree Agree Disagree 101

8 Results of IFC training and consulting Trade finance transactions in your institution are processed with a higher degree of speed due to IFC training Your institution has acquired new clients due to IFC training agree Agree Disagree Your institution has increased its number of trade finance products due to IFC training Other Comments on IFC Training and Consulting Services: SECTION V: Summary Questions 61. What would you say are the main strengths and weaknesses of IFC s GTFP? Main strengths, in order of importance Main weaknesses, in order of importance 62. What changes do you suggest that IFC make to improve the GTFP program? SECTION VI. Evolution of your Trade Finance Business 63. Data on your location s (as identified by you in Question #3) trade finance business. Please complete as much of the below table as possible. If actual numbers are not available, please provide your best estimate. What is your fiscal year: Start month End month Data for fiscal year What is the approximate number of import trade finance transactions 1 undertaken in each year? What is the approximate total volume in US$ Millions for import trade finance transactions undertaken in each year? What is the approximate number of export trade finance transactions 1 undertaken in each year? What is the approximate total volume in US$ Millions for export trade finance transactions undertaken in each year? What is the approximate number of staff 2 directly working in trade finance? Approximately how many of your trade finance transactions 1 were under US$200 Thousand in each year? 2012 Fiscal Year to Date 102

9 Data for fiscal year Approximately how many of your trade finance transactions 1 were under US$1 million in each year? APPENDIX C 2012 Fiscal Year to Date How many trade finance customers 3 does your institution serve? How many foreign banks has your trade finance business worked with? What was the total volume of clean 4 lines, in US$ you had each year? Notes: 1. Trade Finance Transactions are those transactions eligible for GTFP coverage: Private sector Import letters of credit (LC s) and standby letters of credit (SBLC s), as well as the obligation of the issuer of performance bonds, bid bonds, and advance payment guarantees; the obligation of the issuer of a financial instrument for trade financing on-lent to its clients using instruments such as promissory notes, standby LC s, or credit guarantees in favor of participating Confirming Banks that provide funds to the Issuing Bank; Trade finance credit from Confirming Banks which supports LC bill discounting or negotiation, bankers acceptance financing, pre-export or post-shipment financing, and post-import financing on a trade asset portfolio or for individual trade transactions, suppliers credits for the import of capital goods. 2. Include both front office and back office staff in your location. 3. Trade Finance Customers are those engaged in the activities listed in number 1 above. 4. Clean trade finance lines: trade finance lines of credit for which you do not post cash or other collateral such as third-party guarantees. 103

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