Standby letters of credit – still the lifeblood of international commerce?

by Sarah Taylor United Kingdom In 1978 Kerr J famously said that irrevocable obligations assumed by banks are the “lifeblood of international commerce”1. The accuracy of this description was tested recently before the English Court of Appeal. The court remained unwilling to depart from the principle that if a compliant demand is made under a…

Loan Application Alert: New Report! You Can Lease Letter of Credit for Collateral

  by Andy Daniel An insider’s look on collateral based loan application and how to secure commercial loan with leased Letter of Credit. Ontario – Major financial institutes take a conservative approach when offering commercial loans to businesses. Several factors are taken into consideration for the eligibility of an application, including credit history, income, revenues, company’s…

Blockchain: Are Banks Ready for a KYC Revolution?

by Anne Walton Blockchain is a disruptive innovation as an ID management tool. Many of the world’s largest financial institutions have invested in distributed ledger technology—known popularly as blockchain technology—to improve their business operations. An area where this disruptive innovation holds promise is identity management. To date, a large amount of the investment has been in…

This common lending practice threatens investors and markets

By SATYAJITDAS Government bonds were once seen as providing guaranteed, steady income and safety of capital. No longer. The global financial system is now underpinned by the use of government bonds as collateral to secure financial transactions. Collateral use has become more entrenched; banks rely on secured funding, including repos, with central banks. Regulations encourage…

ADB Trade Finance Program has issued its first guarantee for Myanmar, supporting the import of fertilizers from Italy.

The Asian Development Bank’s (ADB) Trade Finance Program (TFP) has issued its first guarantee for Myanmar, supporting the import of fertilizers from Italy. The guarantee was issued in favor of Banca Popolare di Sondrio in Italy in respect of the payment obligation of United Amara Bank (UAB), one of TFP’s local partner banks in Myanmar.…

Brazil to allow foreign lenders to hold land

Foreign lenders and investors are eagerly awaiting a change of law in Brazil, after finance minister Henrique Meirelles suggested they would be allowed to use land as collateral in trade finance and other loans from March onwards. In a televised interview with local news outlet Globo, Meirelles explained that the government was ready to re-establish…

STANDARD CHARTERED, IFC CONTINUE THEIR TRADE FINANCE PARTNERSHIP

Standard Chartered has agreed with IFC (International Financial Corporation), a member of the World Bank Group, to continue their trade finance partnership under the Global Trade Liquidity Program (GTLP) with a total investment of an additional US$1.0 billion. Aimed at boosting global trade in emerging markets by increasing the amount of financing available, the third…

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