ABN Amro banker sees pullback of easy credit in trade finance

Singapore

THE easy credit so richly associated with commodities over the last few years has waned, with the infamous case of fraud at Qingdao prompting some banks to retreat amid the broad rise in anxiety over counterparty risks, says a top executive at ABN Amro in Asia.

At the centre of much hand wringing in the trade finance segment is China - and there, the greater complication lies with liquidity chasing yield across various inflationary assets, as well as ongoing industry reform to tackle overcapacity in many sectors.