ICC Banking Commission meeting in retrospect – part 1
I am just
back from the ICC Banking Commission meeting in Vienna. As always it was a
great experience. For me this no doubt is the greatest Trade Finance event of
the year. This year the structure was as it has been for a couple of years. In
reflection there surely are some elements that the ICC should consider – but
also this meeting showed interesting development.
This year
the theme of the meeting was “Global regulations and compliance in trade.” Again
it was a 2 day event – the first day being “high level” touching upon trends,
outlooks, strategies and the like. The second day was more practical; offering
updates on ICC rules – discovering the need for new rules – and walking through
the Draft ICC Opinions.
As you many
imagine this huge variety of topics – creates a real challenge in terms of the
audience. I spoke to a colleague of mine who told me that all that was being
discussed on “day 1” was totally “black” …. i.e. no clue what they talked about.
“Day 2” however was spot-on her daily job. I am sure I can find people that say
the exact opposite.
It seems
that the ICC Banking Commission is trying hard to expand its reach: ICC Banking
Commission Legal Committee has been established. The URBPO (Uniform rules for
bank payment obligations) has been released – and so has the URF (uniform rules
for forfaiting). And of course the “good old” products such as documentary
credits and guarantees are also on the agenda. This year it was argued that a
process for the purpose of developing factoring rules should be started. By the
way; this was a 1 hour 15 minutes session where members of Factors Chain
International (FCI) went through each and every article of a set of existing
forfaiting rules … hmm perhaps not the best way to sell the idea …
In any case
– the ICC is driving a huge expansion of the reach of the Banking Commission. I
have no problem with this – but I do have concerns. How to make one meeting
with one group of people with such diverse agenda? That must be reconsidered
for sure. One natural idea is to establish parallel sessions – acknowledging
that it is rarely the same people who have an interest in Basel III – that
enjoy the ICC Opinions session.
Another
issue is that it seems hard to find the right “form” for a number of the
sessions. Most of the sessions on “day 1” is build around “panels” who discuss
a certain topic. In reality there is no real discussion – there are some “mini
presentations” often without slides – and without any real “moderation” by the
moderator. I lack moderators who manage the panel in a good way – based on
thorough preparation.
One real
surprise … of the good ones was the session about the ICC Draft Opinions. After
Gary Collyer has stepped down – 3 new technical advisers are trying to fill his
shoes. I.e. David Meynell, Nicole Keller and Don Smith. I am sure that a lot of
us were concerned how that would work. And what can I say: This was great. It
was clear that the 3 technical advisers supported each other – and stood as a
“united” group.” That was good to see. But above all stood David Meynell who
managed the ICC Banking Commission like it has never been managed before. In
his kind and direct way he was 100% in charge – and steered the room through
the Draft Opinions … some of which was rather controversial. That was a perfect
job done … all moderators can learn a lot from that. Watch and learn!
Also at the
meeting was the news that George Affaki and Dan Taylor is stepping down as
Vice-Chairs. This is sad news indeed. Both as some of the “rare” species that
both have strategic visions – and detailed insights. They will be missed.
It seems
clear to me that the ICC Banking Commission is at a Crossroad – lots of choices
must be made. I think that all answers on how to proceed can be found by doing
a thorough evaluation of the ICC Banking Commission meeting last week in
Vienna. Here you saw all the do’es and dont’s.
The above
are my first reactions from last weeks meeting. In the coming weeks – I will
share more reactions from the meeting. Look out for it on this channel.
And do not
forget to take care of each other and the LC.
Best
regards
Kim