FORMAL banking solutions are critical to the modern international trade and finance sector, says Douglas Cupidon, Head of Corporate Banking, CIBC First Caribbean International Bank.

Addressing guests at the International Trade Expo of the Consular Corps of Jamaica last Friday, Cupidon noted that “while globalisation is changing the way things work, instruments like commercial letters of credit, provide a safety net, particularly for international transactions that are increasingly being targeted by hackers.”

Describing trade finance as “big business”, Cupidon said that countries in Asia and the Pacific were reaping outstanding success by “embracing the role of banks in trade and finance.”

He said that CIBC FirstCaribbean International Bank “believes in infrastructure development” and had played a significant role in financing projects like the modernisation and expansion of the Sangster International Airport.

He further added that approximately 80 per cent of international trade is conducted in United States Dollars (USD) and if Jamaica is to increase activity across international markets, access to hard currency will be critical” and that the Bank “was eager to lend to exporters to help them access the USD credit they need in order to grow their businesses.”

Pointing to CIBC FirstCaribbean’s integrated internet platform which “allows a customer to move money locally, regionally and internationally, from the comfort of their desks once all regulatory and compliance issues are satisfied”, Cupidon said that while non-tariff barriers, including lengthy preshipment inspections, continue to pose challenges to international trade, the appropriate safe banking solutions could go a long way in ensuring a smoother process.”