Singapore’s Fortune‑Favored Banks Build a Digital Trade Registry to Halt Fraud
Feeling the sting of lost billions from a spate of commodity trade defaults, some of the planet’s biggest banks are pooling their brains to birth a central digital registry in Singapore. The goal? Cut down on fraud, shine a light on opaque transactions, and keep the credit flow humming.
Why the scramble?
Last year saw Singapore’s own oil trader Hin Leong Trading (Pte) Ltd collapse, exposing serious financial missteps that left lenders scrambling. It was a wake‑up call that the market’s “double‑dipping” horror—getting multiple lenders to finance the same inventory—must be stopped once and for all.
The Big Players and Their Plan
- DBS Group & Standard Chartered are at the helm.
- They’re rolling out the scheme with 12 other banks across Singapore.
- The resulting database will let every participating bank peek at all trade‑financing deals, spotting duplicates and flagging risky moves.
Quotes from the Movers
Ho Hern Shin, an assistant managing director at the Monetary Authority of Singapore, summed it up: “A digital trade registry lets banks avoid duplicate financing and keeps credit flowing steady.”
Moody’s senior credit officer Eugene Tarzimanov added that the initiative is a “credit positive” step, reducing the fraud that has plagued recent years.
What’s Next?
With the registry live, banks will have a shared view of trade finance activities, dramatically tightening the net around fraudulent practices. The collaborative effort is a clear signal that the industry is stepping up to safeguard its own – and the broader economy’s – financial health.
<img alt="" data-caption="DBS signages are seen as office workers work in Singapore Oct 8, 2019.
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Singapore’s New Registry Makes Trading Credit Easier for Small Players
Imagine a world where a tiny commodity trader can suddenly feel the sweet breeze of bank financing. That’s exactly what Singapore’s fresh-off-the-press registry is aiming to do.
Why It Matters
“The registry will make it easier for smaller commodity traders to access bank credit in Singapore,” the chief said to Reuters. He added that lenders need the assurance that the collateral isn’t just a “paper trail” but a solid, verifiable reality.
How It Was Built
The idea started as a slick collaboration among big banks; a little December surprise was the partnership between DBS and Standard Chartered. Within a mere three months, the duo rolled out a pilot over a blockchain platform powered by the tech wizardry of DLT Ledgers. They didn’t go solo – the project assembled a “dream team” of banks: ABN AMRO, ANZ, Deutsche Bank, OCBC, and Rabobank.
What’s Next
After the pilot’s successful crescendo, the plan is to launch the registry as an industry utility that upgrades trade financing practices across the island. When that’s solidified, the sights will turn global, covering major trade corridors at a later stage.
Support Crew
Feel free to celebrate: the project’s proof‑of‑concept gets a thumbs‑up from Enterprise Singapore (ESG), the government agency shepherding trade initiatives. The leading banking representative body has also thrown its hat into the ring.
All in all, Singapore is mapping a smoother, more transparent route for traders, one block at a time.
