Bank Pullback From Commodity Trade Finance Presents Opportunity
- Banks pulling back from trade finance after industry blow-ups
- Specialist funds offer alternative to financing trading houses
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A banking pullback is giving specialist funds the chance to plug part of the widening hole in commodity trade finance.
A series of industry blow-ups has seen banks such as ABN Amro Bank NV, BNP Paribas SA and Societe Generale SA cut their role in financing the global trade in natural resources. Those lines of cheap credit are drying up as a surge in commodities from wheat to copper increases the need for loans.