Banking is integral part of international business, where Trade Finance is one of the most lucrative businesses to any bank. Trade finance, of course a short-term credit/ facilities availed by a bank to their borrower for importing and exporting activities, includes various kinds of loans, advances and facilities required for imports and exports deals. Since such deals are made on foreign trade, it involves transactions of foreign exchange too.
Letters of credit are most often used in international trade, where they are governed by the Uniform Customs and Practice for Documentary Credits (or UCP), the rules of the International Chamber of Commerce.
As we know that a letter of credit is a document issued by a third party that guarantees payment for goods or services when the seller provides acceptable documentation. Letters of credit are usually issued by banks or other financial institutions.
Letter of Credit (LC) as we know it is one of the major lines of business of commercial banks. Employees working in the bank must have a comprehensive knowledge of this product for minimizing the risk involved, facilitating the customers, providing relevant and true information to the customers and also doing necessary operating activities for conducting various LC related activities.
The objective of this programme is to upgrade knowledge and skills of the employees of the bank and help the bank to create a core LC team so that the overall purpose of bank’s non funded income is increased while minimizing the risk. This programme has been designed with highly practical approach.
