Banks Are Facing a Squeeze From Trump's Trade War
- Trade finance revenue already at lowest level in eight years
- ‘Very challenging’ for banks in Asia trying to grow business
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For banks that finance trade in Asia, the tariff war between the U.S. and China couldn’t come at a worse time.
Lenders globally have faced declining revenue from the $9 trillion business of funding cross-border commerce for five years running, thanks to a drop in margins that is persisting in Asia. Now, as the trade dispute between the world’s two biggest economies intensifies, the risk is that volumes decline, worsening prospects for the top banks in the region including HSBC Holdings Plc and Standard Chartered Plc.