Singapore-based DBS Bank is looking to replace some of the substantial volume of letter of credit (L/C) business it has lost over the last year or so.

The bank's trade finance business has been in consistent decline, from 62 billion Singaporean dollars (S$64 billion - US$45 billion) in the second quarter of 2014 to S$53 billion in the same quarter in 2015.

China trade

Over the same period, DBS Bank's China trade loans have fallen particularly sharply, from S$36 billion to S$26 billion.

This is largely down to a decline in offshore yuan export bills under L/C funding.

Compensating efforts

To compensate for this decline, DBS Bank has said it is growing other aspects of its trade finance offering, including the provision of direct import/export financing and supply chain financing solutions to its corporate clients.

The bank anticipates its overall trade volumes to level out in the first half of 2016 as the growing business lines offset the decline in export bills under L/C funding.

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