Standby Letters of Credit

This authoritative reference book gives thorough, practical guidance for anyone who needs to deal with standby letters of credit either professionally or academically. Augmented with examples of numerous real-life cases, the book addresses the exact procedures undertaken by global banks in handling letters of credit transactions whilst incisively providing an article by article interpretation of the ISP98. Furthermore, the book also explains the credit operation cycle, the various parties to the credit transaction, types and uses -with special emphasis on tender and performance standby letters of credit, roles and responsibilities of the parties to the transaction, risk management and fraud detection and prevention. The book literally provides all the tools needed to deal not only with routine problems but also with unforeseen difficulties whether at clerical, middle management or senior management level. Regarding the problem of detecting and preventing commercial fraud, Chapter 15 addresses in a decisive, organized and comprehensive manner, the types of fraud the bank frequently encounter whilst conducting its trade finance operations. The Author quotes several examples of fraudulent transactions and pinpoints the operational gaps the fraudsters often use to penetrate the bank ISP9812. Types and Uses of Standby Letters of Credit13. Roles and Responsibilities14. Risk Management15. Fraud Detection and Prevention16. Presentation and Settlement