Bank spreads on trade finance narrowing.(COVER REPORT: TRADING ON THE (RMB) MARGIN)

HONG KONG -- Bank spreads on trade finance in Asia have narrowed by anything from 40-60 per cent since the Global Financial Crisis, says Vivek Gupta, ANZ's Head of Trade and Supply Chain, Asia.

"At the time, they went to two per cent per annum, and in many cases more," he says. Now they are below one per cent per annum." Gupta says strongest competition in trade finance is coming from in-country local banks, but larger foreign banks are also in the market

Gupta sees a lot of business optimism around Asia growth--that all economies seem to be growing robustly. "That is a big factor in the optimism of most clients," he says. "As long as they continue to pursue …