The world’s governments need to address the roughly $1.5 trillion global trade finance gap that is allegedly hampering the creation of substantial jobs to boost economic growth amid ongoing economic uncertainty, the Asian Development Bank (ADB) reported on Tuesday.

Based on its latest Trade Finance Gap, Growth, and Job Survey, ADB said the financial disparity mostly affects small and medium-sized enterprises (SME) and those firms led by women in gaining trade funding.

Dubbed as the “world’s leading barometer of trade finance health,” the report was based on responses from banks, firms, and export credit agencies globally.

“The huge trade finance gap is a global challenge that shackles economic growth and harms efforts to reduce poverty,” ADB’s Trade and Supply Chain Finance Head Steven Beck.

Given the uncertain economic outlook, Beck said it is dire that more efficient, stable, and sustainable trade finance channels are generated to spur global growth and development.

The report also disclosed that 45 percent of trade finance applications by surveyed SME are rejected, compared to 39 percent for mid- and large-sized firms and 17 percent for multinational corporations.

Meanwhile, the rejection rate for women entrepreneurs is 44 percent as against the 38 percent for male-owned companies.

Consequently, the multinational bank recommended governments to provide better access to trade financing for SME and businesswomen.

“(It) will not only narrow the gap but also empower them to contribute to inclusive growth and sustainable development,” the report said.

More than three-quarters, or approximately 76 percent, of the surveyed banks, told that anti-money laundering and know-your-customer guidelines are foremost impediments to escalating their trade financing operations.

While these regulations are crucial to ensure the global financial system is not used to fund terrorism or launder money, they can mistakably cut off legitimate companies in less-developed markets from the financial support they need to develop.