The Rise of Capital-Light Banks: Why Euro Exim Bank Is Built for the Future 1 Global banking is entering a Basel-constrained era where capital efficiency matters as much as credit expansion. 2 Traditional loan-heavy models struggle under higher risk-weighted assets, liquidity coverage ratios, and capital buffers. 3 Capital-light banks focus on **non-fund-based instruments**—Letters of Credit, SBLCs, and Bank Guarantees—rather than balance-sheet lending. 4 Euro Exim Bank (EEB) has structured its

Why Guarantees — Not Loans — Will Define the Next Decade of Trade Finance 1 Traditional lending was designed for stable markets and predictable cash flows—not today’s volatile, fragmented global trade environment. 2 Loans increase leverage and balance-sheet exposure, often without improving execution certainty. 3 Trade today fails less from lack of funding and more from execution risk, counterparty risk, and compliance friction. 4 Guarantees and Standby Letters of Credit (SBLCs) directly address