James Harmon, chairman of the U.S. Export-Import Bank, said the agency intends to use the Internet to "grow U.S. exports" and help more small and medium-sized businesses tap into global markets.

"We plan to build a dynamic Web site that will bring together buyers, sellers, banks and other lenders who are all there for one purpose: to get the deal done," Harmon told the bank's annual conference in Washington last month.

Harmon, who had just returned from a meeting in Berlin of the chairmen of the Group of 7 nations' export credit agencies, said it was clear to him that the U.S. Ex-Im Bank has not kept pace in a number of areas, including automation and use of technology.

Harmon noted that less than 1 percent of the 7.5 million U.S. small businesses export. "They could make a significant dent in the U.S. trade deficit if we got them thinking, not just Boise, but Buenos Aires," he said.

Today, Ex-Im Bank deals with less than 2,000 companies. To dramatically increase the number of companies exporting, "we need a revolution in how we do business," Harmon said. "That revolution is the Internet."

MANY APPLICATIONS TO BE PROCESSED ONLINE

Ex-Im Bank has experimented over the past year with online letters of interest.

"It has gone well," Harmon said. "Ultimately, we expect to process more applications online. We can finance a car and get a mortgage online. Why not finance an international deal over the Internet?"

Ex-Im Bank is in the midst of a year-long, strategic focus on the agency's future. Harmon said export credit agencies will play a larger and larger role in funding trade with the developing world in the future.

"There is little question that the competition will only heat up, as export credit agencies double and triple the amount of funds they invest to maintain or expand their nation's export competitiveness," Harmon said.

The United States faces a hotly competitive race, and countries that can get the greatest number of their businesses involved in the global economy will be in the strongest position, he said.

BANK AGREES TO FINANCE ONLINE TEXTILE TRADING

Global Textile Network Inc. and First International Bank, Hartford, Conn., announced an agreement to make online financing available to companies that buy and sell textile products and services on Textrade.com.

Through Textrade.com, companies around the world can access financing for transactions up to $5 million.

The bank's e-CreditMenu product offerings include inventory, equipment and international trade financing for each stage of the textile value chain, from trading raw commodities such as fiber, yarn and greige fabric all the way through to manufacturing and distribution.

ECREDIT.COM ADDS AUTHENTICATION SERVICE

The Global Financing Network operated by eCredit.com will integrate VeriSign's business-to-business authentication, payment and validation services.

Customers will have access to real-time credit information and real-time financing from participating financial institutions.

This will enable all parties conducting transactions on B2B exchanges -- including buyers, sellers and financial institutions -- to perform secure transactions in real time.

Peter McKay, president of eCredit.com, said, "We are taking the next, natural step toward completely automating the credit and financing process for the B2B exchanges."

Banks will be able to authenticate parties requesting loans, leases or other financial services. A wide range of payment types will be available from multiple financial institutions and back-end payment processors.

The system will generate binding proof of electronic transactions through digital records and digital receipts.

RECOVERY TAKES HOLD IN SOUTH KOREAN BANKING

The 1999 results for the top South Korean banks indicate that a systemic recovery is under way, according to Andrea Cheng, analyst in the global strategy group at Lehman Brothers.

Shinhan Bank continues to stand out, she said, maintaining its superior asset quality and capital ratios relative to its peers. It likely will be upgraded to investment grade this year, she said.

Seoulbank, which the government continues to try to privatize after negotiations failed with HSBC, remains the biggest drag on aggregate banking sector performance, Cheng said.

She said the five strongest banks are Shinhan, Kookmin, Housing & Commercial, Hana, and KorAm.

REGULATIONS BLOCKING BORDERLESS BANKING