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At ITFA’s 50th annual conference in Cyprus, Deepesh Patel, Editorial Director at Trade Finance Global, spoke to Marie-Aude Vesval, Global Unfunded Risk Participation Leader, Credit Specialties at Marsh. They discussed Master Risk Participation Agreements, or MRPAs.

Vesval explained, “MRPAs are initially a bank-to-bank product, but they can also be issued by insurers. They could, in theory, be used as an alternative to credit insurance for any underlying assets.”

“But within the insurance market,” she continued, “we see that the biggest applications are for FI programs and for performance guarantees.” 

For FI programs, MRPA’s can bring alignment between the many parties to which banks distribute programs to – like multilaterals, other banks and insurities.

And they’re a very good match for guarantees because MRPAs mirror the bank’s own obligations.

Watch the full interview to find out more.