Risk Analysis of Letter of Credit ------Based on Principles of ‘Independence’ and ‘Strict Compliance’
نویسندگان
چکیده
Based on the UCP 500 and UCP 600, this paper analyses the two principles of letter of credit, in order to prepare the theory basis for the risks analysis afterwards. For the different parties (exporter, importer, banks), possible risks and frauds are shown with case studies. The paper also puts forward the advice for various risks and intends to indicate that risks still exit in letter-of-credit transaction even it is the safest method of payment nowadays in international trade. Those risks may happen on each party, which is not only the exporter, but also the importer and banks. Rights for each party always come with the appropriate obligations.
منابع مشابه
Discounting of Letters of Credit; a Legal Analysis
Letter of Credit is an international payment instrument whereby the issuing bank undertakes to pay the beneficiary, against presentation of certain stipulated documents, according to the conditions of the Letter of Credit. Discounting of LC for the short-term financing of the seller, due to the independent and irrevocable undertaking of the bank to make payment, is prevalent. Beneficiary gets t...
متن کاملDesigning and Presenting a Model for Determining the Risk (Bankruptcy) of Bankruptcy of Banks and Non-Bank Credit Institutions Based on Differential (Diagnostic) Analysis
This article aims to model the credit default assessment of banks and non-bank credit institutions by differential analysis (diagnostic). For this purpose, the statistical sample size has been determined through the "screening sampling method". The researcher collects observations by sampling members of the statistical community. The purpose of the study, which includes all "banks and credit in...
متن کاملLetter to the editor on "The Relationship between Sitting Posture and Musculoskeletal Pain in Boy Elementary School Students" by Saeed Ilbeigi et al.
The expanding developments in medical sciences indicate that it is necessary to emphasize compliance with religious, legal, and ethical standards in research, especially human research, and to collect and maintain information to preserve human health and dignity. As stated in the basic principles of the journal, research should be organized based on the Helsinki Declaration and in compliance wi...
متن کاملInvestigating the Theory of Survival Analysis in Credit Risk Management of Facility Receivers: A Case Study on Tose'e Ta'avon Bank of Guilan Province
Nowadays, one of the most important topics in risk management of banks, financial, and credit institutions is credit risk management. In this research, the researchers used survival analytic methods for credit risk modeling in terms of the conditional distribution function of default time. As a practical task, the authors considered the reward credit portfolio of Tose'e Ta'avon Bank of Guilan P...
متن کاملCredit rating of the bank legal customers by using the improved modified Russell model (Case study: the legal customers of Arak Melli Bank)
The most exchange volume in a country will be obtained through bank system whose correct function will have a determinant role in improving economic activities. Nowadays, the customer’s rating and accreditation subject has been considered more than before by the banks due to increase the volume of overdue claims and banks’ past over dues. One of the most important tools for controlling the bank...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2013