Improving the Role of Eximbanks/ECAs in the OIC Member States
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3.2 Analysing the Performance of OIC Export Credit Systems
There is no single perfect model for an ECA. Each must be considered within its own national
context. All ECAs share common features and a basic mandate to help facilitate exports and
investments, but there are different means to achieve the same ends.
The definition of success therefore is different, depending on the unique country circumstances.
For example, for an ECA whose objective is to increase non-oil exports and diversify the export
base, the number of SME export clients might be its most important Key Performance Indicator
(KPI). For an ECA with an objective to help exporters expand their export markets – regardless of
their size – might choose to measure business volumes as their main KPI. One ECA might seek to
maximize business volume, while another might seek to maximize the number of export clients.
So, caution is required to establish a set of common benchmark indicators for evaluating
individual ECA effectiveness, as what is important in one country may not be important in
another country.
Moreover, to be an effective ECA is more than being operationally effective. It means balancing a
range of stakeholder needs, including the government, exporters and private sources of
financing and insurance. For example, an ECA that only focuses on its own interests and
strengths without regard to the needs and interests of other stakeholders, such as commercial
banks who are important partners and whose trade finance activities could be displaced by an
ECA, cannot be considered effective.
Therefore, it is important to consider more broadly what constitutes a “healthy” export credit
system and this is much more than simply operational effectiveness. It implies that the ECA itself
is well managed, but also that it is working with the existing private sources of finance and
insurance. In addition, as a public policy vehicle on behalf of the government, the ECA must
strike a balance between – at times – conflicting objectives, i.e. meeting policy and
developmental objectives and being financially sustainable.
So, while all ECAs are different, it is possible to make meaningful and valid assessments of export
credit systems. In particular, four main common parameters that make up an export credit
system:
a) Government Control and Oversight
b) Exporter Focus/Service
c) Institutional Strength
d) Private Sector Involvement
The Export Credit System Health measures the overall health of a national system. Within each of
the four parameters, four key dimensions were developed which further defined each parameter.
Each of these dimensions is a positive value statement intended to define what “health” means
for each area.
In general, a healthy system is one that effectively balances various stakeholder needs and
interests, while accomplishing the ultimate goal – providing exporters with the support they
need to be internationally competitive.