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RISK DISCLOSURE

Structured Finance Involves Risk

International Commerce Bank Singapore (“ICBANKSG,” “the Institution,” “we,” “our,” or “us”) provides structured banking, trade finance, project financing, and capital structuring solutions.

All financial activities inherently involve risk. Clients and counterparties should carefully review the following disclosures prior to entering into any engagement. Nothing contained on this website eliminates or reduces the inherent risks associated with financial transactions.

1. General Financial Risk

Participation in structured finance, trade finance, capital deployment, or cross-border transactions may expose clients to:

  • Market risk
  • Credit risk
  • Liquidity risk
  • Counterparty risk
  • Regulatory risk
  • Jurisdictional risk

Financial outcomes may vary based on economic conditions, policy changes, and market volatility.

2. Market Risk

Market conditions may fluctuate due to:

  • Interest rate changes
  • Currency movements
  • Inflationary pressures
  • Political developments
  • Macroeconomic instability

Such fluctuations may impact repayment capacity, asset valuation, or transaction performance.

3. Credit & Counterparty Risk

Project financing, structured instruments, and trade facilities rely on the creditworthiness and performance of involved parties. Failure of a counterparty to meet contractual obligations may result in:

  • Financial loss
  • Delayed payment
  • Legal enforcement procedures
  • Collateral liquidation

ICBANKSG conducts risk assessment; however, no transaction is entirely risk-free.

4. Liquidity Risk

Certain structured transactions, guarantees, or long-tenor project facilities may involve limited liquidity. Clients may not be able to:

  • Exit arrangements immediately
  • Restructure obligations without consent
  • Accelerate capital recovery without contractual triggers

Liquidity constraints may arise during periods of financial stress.

5. Regulatory & Legal Risk

Cross-border financial engagements may be subject to:

  • Regulatory changes
  • Governmental intervention
  • Licensing requirements
  • Tax law modifications
  • Capital control measures

Regulatory shifts may materially affect transaction structure or enforceability.

6. Project Finance Risk

Infrastructure and large-scale development projects may carry additional exposure including:

  • Construction delays
  • Cost overruns
  • Environmental approvals
  • Revenue performance variability
  • Operational disruptions

Projected returns are dependent on execution, performance, and economic sustainability.

7. Trade Finance & Instrument Risk

Trade instruments (including LC, SBLC, and Guarantees) involve operational and counterparty risk.

  • Documentary discrepancies
  • Jurisdictional enforcement challenges
  • Issuing bank risk
  • Fraudulent documentation exposure
  • Political trade restrictions

Proper due diligence does not eliminate transactional risk.

8. Currency & Cross-Border Exposure

Transactions denominated in foreign currencies may be affected by:

  • Exchange rate volatility
  • Currency devaluation
  • Capital flow restrictions
  • Sovereign risk developments

Currency movements may materially impact repayment or settlement obligations.

9. Forward-Looking & Forecast Risk

Financial projections, feasibility assessments, or market analyses referenced by clients or counterparties may rely on assumptions that prove inaccurate.

ICBANKSG does not guarantee:

  • Future profitability
  • Market performance
  • Project viability
  • Investment return levels

All projections are subject to change.

10. No Guarantee of Approval

Submission of:

  • Financing applications
  • Trade instrument requests
  • Structured capital proposals

does not constitute approval or commitment.

All engagements remain subject to:

  • Internal risk review
  • Compliance verification
  • Formal contractual execution

ICBANKSG reserves the absolute right to decline any transaction without obligation to provide detailed justification.

11. Independent Professional Advice

Clients are strongly encouraged to obtain independent:

  • Legal advice
  • Financial advice
  • Tax consultation
  • Regulatory counsel

prior to entering into any structured transaction.

ICBANKSG does not assume responsibility for independent advisory outcomes.

Institutional Notice

ICBANKSG operates under a governance-driven and risk-managed framework; however, no financial institution can eliminate all forms of risk.

Engagement with institutional banking services requires informed decision-making, disciplined evaluation, and acceptance of inherent financial exposure.

By proceeding with formal documentation, clients acknowledge understanding of these risk considerations.

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