Banks and Bureaucracy
By Lionel Taylor
Posted 15/05/2009
Joining CEF during the worst recession in living memory with the financial systems in crisis and liquidity drying up, some might suggest that it was at best a brave thing to do! However I have enjoyed each and every day of the last three months and truly believe that the following months and years will be as equally rewarding.
Why is this you may ask?
Coming from a lengthy career spent in prominent financial institutions where regretfully the needs of the customer has often become secondary to internal politics, positioning and bureaucracy, it is refreshing to now be in a business that has the conviction to put the customer first and the dexterity to cater for these ever changing times.
Like most, I read daily of the banks all claiming and providing statistics that they are supporting the global drive to stimulate a recovery through increased lending to their corporate customers. Yet almost without exception those same corporate customers are disputing such claims. Increased capital provisions required by Basel II regulation, a drive by the banks to take assets of their balance sheets and ever tightening credit policies are hampering the efforts to provide the liquidity that business requires. In fact most businesses are reporting that working capital facilities are being reduced whilst charges and interest margins are rapidly increasing.
In CEF this has resulted in an ever increasing demand for our services. Major companies looking to protect their key Chinese suppliers are now working in partnership with us to ensure that their suppliers are somewhat insulated from the extremes of the credit crunch. Chinese sellers are increasingly introducing us to their major customers in the hope that we can provide solutions to accelerate payment and provide a boost to their cashflow.
I remain optimistic that a global recovery will happen and look forward to a time when the banks will play their part in achieving this. In the meantime CEF will continue with determination and dedication to play our part in supporting trade between China and the West.
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