Correspondent Banking & Trade / Export Finance: New Challenges
Commerzbank at a glance Commerzbank is chosen Bank No. 1 for the German Mittelstand and is one of the leading retail and corporate financing banks in Germany. We accompany the global business of our clients. Founded: 1870 as "Commerz- und Discontobank" in Hamburg Balance Sheet: EUR 533 bln. (12/2015) Core Capital Ratio: 12,0% (12/2015) Rating: Employees: Clients: Presence: BBB+ / P-1 (Moody's) A- / A-2 (S&P) BBB / F2 (Fitch) 51.782 thereof 12.019 abroad 16 mln. private + 1 mln. corporate customers 1.200 Branches in Germany worldwide: 23 branches, 44 Representative Offices further subsidiaries and Group companies in more than 50 countries
New Correspondent Banking Landscape
Challenges for Correspondent Banking & Trade Finance: In the focus of Compliance KNOW YOUR COSTUMER Increased compliance activity especially in payments and in trade as well Increased complexity owing to multiple authorities and jurisdictions (US-link) Focus on transparency Increased allocation of resources Consequences are increasingly costly G-20 Global Forums 2009: Global Plan for Recovery and Reform IMF, BIS, Financial Stability Board Consequencies Strong customer focus Regular comprehensive counterpart checks Network reduction Higher entry barriers for international banking Regional Authorities National Regulators ECB, EBA, European Commission Central Banks, local FSA
Major Enforcement Actions by US Authorities on Non-US Banks 2009 2010 2011 2012 2013 2014 2015 $ 536 million $ 298 million $ 619 million $ 100 million $ 151 million $ 1.45 billion $ 350 million $ 500 million $ 670 million $ 258 million $ 8.9 billion $ 787 million 1.9 billion http://www.treasury.gov/resource-center/sanctions/civpen/pages/civpen-index2.aspx
Sanctions & Embargoes Definitions MULTI- LATERAL UNI- LATERAL Restrictions imposed by governments on international trade and services with a particular country, government or list of persons or entities. Partial Embargo Arms Embargo Financial Sanctions on Designated Persons Targeted Trade Restrictions Total Embargo
Sanctions and Embargos 2016 (Simplified Overview) Yemen Egypt Guinea-Bissau Afghanistan Balkans Tunisia Venezuela Burundi Financial Sanctions Arms Embargos Belarus Eritrea Guinea DR Congo Liberia Libya Zimbabwe Somalia Russia / Ukraine Iran Syria Cuba North Korea Sudan Côte d Ivoire Myanmar Trade Sanctions China Armenia Lebanon Azerbaijan Irak = Additional or US-only sanctions
Derisking correspondent banking: growing compliance complexity limitations on downstreaming correspondent banking Most banks become focused on their own customers and limit their clearing services for other banks Consolidation of the bank network with access to international payments https://www.pwc.com/us/en/risk-assuranceservices/publications/assets/pwc-correspondent-bankingwhitepaper.pdf
The major banks in Uzbekistan ( 31.12.2015) 1 EUR = 3074,19 UZS Nr. Bank Assets (mn. EUR) Capital (mn. EUR) Commerzbank accounts 1 NBU 4.294,2 369,7, $, 2 Uzpromstroybank 2.595,1 224,6, 3 Asaka Bank 1.758,2 226,1, $ Qishloq Qurilish Bank 4 QQB 1.379,3 140,48, $ 5 Ipoteka Bank 1.091,8 83,6, $ 6 Halqbank 1.166,5 147,99, $ 7 Agrobank 952,1 117,2,, $, 8 KDB 706,7 64,5,, 9 Hamkorbank 580,7 71,7, $ 10 Ipak Yuli Bank 425,8 47,8, $ 11 Kapitalbank 398,4 26,8,, $ 12 Asia Alliance Bank 377,8 31,7,,
Recommendations for importing customers Payments & Trade Finance Transparency De-offshoring Goods description Economic common sense Transport descriptions Fast replies appreciated Export Finance ECA financing as part or optionof the delivery contract Individual Loan Agreement One general supplier, one general contract, one ECA Foreign subcontractors case-bycase possible Standard deal volume > 2 mn
Dr. Bodo Thöns Director Representative Office Tashkent Tel.: +998 71 1403706 Email: bodo.thoens@commerzbank.com Commerzbank AG, Representative Office Beshagach. 1, 2nd fl., UZ - 100066 Tashkent