U.S. Trade Finance Concentrated With Top 5 Banks

According to the report published by Greenwich Associates the U.S. trade finance market is dominated by top 5 banks.


Published on-19.November.2014- Approximately 35% of large U.S. companies do business with Bank of America Merrill Lynch, Citi and J.P. Morgan.

The top five is rounded out by HSBC and Wells Fargo, both of which have achieved market penetration levels of 23–24%.

These banks are the 2014 Greenwich Share Leaders in U.S. Large Corporate Trade Finance.

The 2014 Greenwich Quality Leaders are Deutsche Bank, J.P. Morgan and RBS.

Despite this high level of concentration, companies have seen some significant shifts in the competitive landscape of providers over the past several years. In domestic trade finance, up-and-coming Wells Fargo capitalized on an opportunity to gain ground.

Many of the banks are weighing the thin margins for trade finance against the increasing capital requirements from Basel III,” says Greenwich Associates consultant Andrew Grant. “We are seeing some banks actively pulling back in certain segments while others aggressively step in to fill the void.

Throughout this period, one trend remains consistent: The international needs of large U.S. companies are expanding.

With companies eying Western Europe, Asia and Latin America, banks with broad international networks have a clear advantage, and providers including HSBC have capitalized on this demand with strong gains in market penetration.

Consultants Don Raftery and Andrew Grant specialize in trade finance in the United States. Please read full report from this link.

About Greenwich Associates

Greenwich Associates is the leading provider of global market intelligence and advisory services to the financial services industry. Our clients include nearly all of the world’s leading investment banks, commercial banks and asset managers.

Greenwich Associates began in 1972 with the vision of Charley Ellis and a small team of 10 Members in Connecticut (US). His big idea: Create a superior professional strategic financial consulting firm, hire the very best people and deliver insightful, unbiased, timely and above all actionable advice to help clients improve business performance.

Knowing that the best advice requires the best information, we have developed our own independent, in-depth market research practice. This year alone, we will interview more than 50,000 highly regarded financial services executives in more than 70 countries.

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Our client base includes more than 250 leading banks and fund manager firms, plus the more than 50,000 corporations and institutions who, as participants in our research, are members of the Greenwich Exchange.