Bank Letter Of Credit Policy
- Bank Letter Of Credit Policy
- An insurance policy that allows U.S. banks to confirm letters of credit issued by foreign financial institutions, facilitating the purchase of domestic exports. The policy was established by the Export-Import Bank of the United States and insures the domestic bank against the possible default of the foreign institution.
Remember, banks take on additional risk when dealing in overseas transactions. Political risk, such as warfare or government intervention, can wipe out a borrower's ability to reimburse the bank. Furthermore, in smaller, less stable nations, foreign exchange risk can be very large. The policy protects banks against any inconvertibility arising from foreign exchange issues.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Bank Letter of Credit Policy — Standards allowing banks to confirm letters of credit ( letter of credit) by foreign banks supporting the purchase of US exports. Bloomberg Financial Dictionary … Financial and business terms
Letter of credit — After a contract is concluded between buyer and seller, buyer s bank supplies a letter of credit to seller … Wikipedia
Bank of England — Bank of England … Wikipedia
Bank of America — Not to be confused with First Bank of the United States, Second Bank of the United States, or Bank of United States. Bank of America Corporation Type Public Traded as … Wikipedia
Credit card — Personal finance Credit and debt Pawnbroker Student loan Employment contract Salary Wage Empl … Wikipedia
Credit unions in the United States — Banking in the United States Monetary policy The Federal Reserve System Regulation Lending Credit card Deposit accounts Savings account Checking account Money market account Certificate of deposit … Wikipedia
Bank of America Home Loans — Type Subsidiary of Bank of America Founded 1969 (Countrywide), February 2009 (Bank of America Home Loans) Headquarters Calabasas, CA, USA (Countrywide Financial) Cha … Wikipedia
Bank Leu — AG (pronounced Loy, as in toy) was a Swiss private bank that existed from 1755 to 2007. Headquartered in Zurich, it was a subsidiary of Crédit Suisse from 1990. In 2007, it was merged with that company s other private banking units as Clariden… … Wikipedia
Credit default swap — If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity … Wikipedia
Credit rating agency — Corporate finance … Wikipedia
