Rabobank plans to streamline its trade and commodity finance offering by terminating operations in London, Shanghai and Sydney, GTR can reveal. In a letter to clients sent on January 11, the Netherlands-based lender says efforts to make its trade finance offering more cost-effective have been “accelerated by rapidly changing global markets due to the Covid pandemic, trade wars and changing banking landscape”. “In addition, significant fraud and default cases in our line of business, have forced us to carefully review our organisation,” it says. As a result, trade and commodity finance activities will be terminated in Rabobank’s London, Shanghai and Sydney offices. Other wholesale banking activities in those locations will continue, and dedicated trade finance teams will remain active in Utrecht, Singapore, Hong Kong, New York, São Paulo, Buenos Aires and Nairobi. “We understand this decision might impact (part of) your business and potentially requires you to find alternative financing,” the letter adds. “In order to ensure a smooth transition in these impacted locations, we strive to mutually agree on approach and timelines or potentially find other financing solutions to ensure minimal impact on your business.” A Rabobank spokesperson tells GTR its trade and commodity finance operations will continue to… continue reading
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Source: CTRM Center