A major project has been announced to to standardise and harmonise market terminology for global supply chain finance products and services.

The International Chambers of Commerce (ICC) Banking Commission has joined forces with five leading business associations to create a Global Supply Chain Finance Forum. The aim of the new body is to clarify existing definitions and supply chain finance terminology.

It has been established in response to the need for greater harmonisation within the trade finance industry, encompassing products and services offered by financial institutions such as banks and factoring and forfaiting companies.

Kah Chye Tan, chair of the ICC Banking Commission said it is "now more important than ever before" for all market participants to adopt universal terminology due to the proliferation of cross border trade and the development of the internet and other technologies.

"This initiative will promote competition and innovation while providing market nomenclature clarity for all stakeholders," Mr Tan said.