Major banks look to develop digital trade registry

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Singapore

Some of the world’s biggest banks in commodity trade finance are creating a digital trade finance registry in Singapore to reduce risk of trade fraud and boost transparency after losing billions of dollars due to a spate of defaults. Banks have pared their commodities business this year following collapses, including that of Singapore oil trader Hin Leong Trading, which shocked lenders after instances of financial wrongdoing were laid bare by the coronavirus crisis. According to a joint statement issued on Tuesday, DBS Group and Standard Chartered are leading a group of 12 banks in Singapore to create and conduct a central database to access trade transactions financed across banks.—Reuters