Export Import Bank debate in the US

Ex-Im Bank of the USA is a federal government backed institution which specialises in trade finance. It is similar in functions to India's Exim bank except that Indian Exim bank doesn't get into trade insurance, which is handled by another body called Export Credit Guarantee corporation of India. In fact, India's Exim bank copies most of the functions of US Ex-Im bank given that US institution predates Indian one by more than five decades. 

US Ex-Im bank is under threat of being de-authorized, unless the US congress re-authorizes it shortly. 

The bank's critics, mainly the republicans, bank on the argument that such subsidising banks lead to market distortion and help private sector players, and therefore, they are a form of corporate welfare scheme. They choose the winners in the private sector by choosing whom to help by providing easy access to credit for international trade. It is nothing but crony capitalism in another form, subsidising the rich. 

The bank's supporters argue that closing down Ex-Im bank would put American manufacturers at a disadvantage in the global market as there are competing banks being run by other countries, notably China, which support the domestic manufacturers to capture global market. This would lead to job losses, and loss of access to global market. 

Most of Indian Exim bank's trade finance is directed in such a way that the buyer in the global market uses it to procure Indian goods. Such finance is directed through lines of credit mechanism, project finance, long term overseas investment finance etc. The Exim banks across the world usually step in to fill a void that is not filled by the conventional banking and regular trade finance. And most of the Exim banks are sponsored by the governments. China is currently the biggest user of Exim bank mechanism for international trade finance.  

It is interesting to note that the US is even debating on the existence of such an important institution. Such important institutions should not be given expiring charter, like what the US has done. It should be enacted by an act of parliament, like what India has done. Exam banks do not just give packing credit or trade insurance, they are the source of stability for long term international trade finance, and are extension of trade and commercial diplomacy. Losing Ex-Im bank for the US might have long term implications which might not be easily quantifiable today in terms of loss of jobs or dollars earned.