ABSTRACT
The global financial and economic crisis that began in late 2007 has had significant and lasting adverse impact on trade and supply chain finance, and by extension, on the conduct of international commerce. Capital adequacy and reserve requirements imposed by regulators are necessary and prudent, and they must be adjusted periodically to ensure the viability of the global financial system as well as the safety of deposits and investments entrusted to financial institutions. The Transaction Matching Application (TMA), shown in this case to be the Trade Services Utility (TSU), but potentially another compatible matching and decision engine, is critical to the functioning of the Bank Payment Obligation (BPO). Supply chain finance programs are growing and gaining momentum and popularity in the market, as buyers and suppliers become increasingly aware of the business benefits of well-designed programs. Traditional trade finance mechanisms, and arguably, elements of supply chain finance have been in existence and in use for many decades.
