How to Participate in the TFP
Criteria to join as issuing bank
The TFP is open to qualified banks located in ADB’s developing member countries.
The criteria for eligibility include:
- positive financial statements
- strong corporate governance
- clear and balanced stakeholder structure
- existing trade finance operations
There are no fees to join the TFP.
How to join as a confirming bank
Confirming banks are in a key position to support more business for exporting clients, especially in countries where credit lines are limited.
International, regional, and local banks are eligible to join ADB’s TFP as a Confirming Bank, provided they are reputable institutions that have trade finance operations and adequate anti–money-laundering (AML) and know-your-client (KYC) policies.
To participate as a Confirming Bank in the TFP, interested parties are required to provide information on their AML and KYC policies. Eligible confirming banks should sign a Confirming Bank Agreement.
There are no fees to join the Program. The party requesting the guarantee (Issuing or Confirming Bank) is responsible for paying applicable guarantee fees.
Advantages of the TFP
Advantages to issuing banks
- increases bank’s credit lines
- expands relationships with correspondent banks
- reduces cash collateral requirements
- enhances the ability to maintain or attract new clients
- provides critical support during times of crisis
Advantages to confirming banks
- provides low-risk access to new and challenging markets
- expands geographic coverage to service export clients
- leverages existing country line and Issuing Bank limits
- provides capital relief under Basel
- provides valuable market intelligence to help banks move into frontier markets