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  • Documentary Credit Department

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    Ghulam Abbas
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    Mr. Zaidi deals with the Documentary Credit Department. There are two types of facilities - non-funded and funded. Non-funded facilities include guarantees and letters of credit where the bank's finances are not used. Funded facilities involve the bank's finances and include export and import financing. The Documentary Credit Department handles non-funded facilities while the Credit Operations Department manages funded facilities. When issuing guarantees, the bank typically requires details like the applicant and beneficiary names and addresses, currency, amount, terms, and expiry date, which are then recorded in the bank's guarantee register.

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    Mr. Zaidi deals with the Documentary Credit Department. There are two types of facilities - non-funded and funded. Non-funded facilities include guarantees and letters of credit where the bank's finances are not used. Funded facilities involve the bank's finances and include export and import financing. The Documentary Credit Department handles non-funded facilities while the Credit Operations Department manages funded facilities. When issuing guarantees, the bank typically requires details like the applicant and beneficiary names and addresses, currency, amount, terms, and expiry date, which are then recorded in the bank's guarantee register.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    11 views4 pages

    Documentary Credit Department

    Uploaded by

    Ghulam Abbas
    Mr. Zaidi deals with the Documentary Credit Department. There are two types of facilities - non-funded and funded. Non-funded facilities include guarantees and letters of credit where the bank's finances are not used. Funded facilities involve the bank's finances and include export and import financing. The Documentary Credit Department handles non-funded facilities while the Credit Operations Department manages funded facilities. When issuing guarantees, the bank typically requires details like the applicant and beneficiary names and addresses, currency, amount, terms, and expiry date, which are then recorded in the bank's guarantee register.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    DOCUMENTARY CREDIT DEPARTMENT

    Mr. Zaidi deals with this department.

    TYPES OF FACILITIES
    There are two types of facilities: Non-funded Facilities Funded Facilities

    NON FUNDED FACILITIES


    FBL gives guarantees on the behalf of its customers to pay the principal in case of any mishappening on: Customer Guarantees Sui Gas Guarantees Wapda Excise Financial Institution When one client goes to a financial institution for loan, that institution does not believe on customer and demand for Bank guarantee. Then financial institution gives his guarantee to another financial institution. There are non funded facilities in which Banks own finances are not utilized. Other non -funded facilities include: Letter of Credit

    L/c at Sight L/s Usance

    FUNDED FACILITIES
    Funded Facilities are those which are related with the flow of Finances. In funded facilities Banks own finances are involved. Theses are of many types:

    Export Facilities
    Pre Shipment Post-Shipment Long Term Financing

    Import Financing
    Financing Against Imported Merchandise (FIM) Trust Receipt Foreign Bills Purchased Provision of non funded facilities is the responsibility of Documentary Credit Department, while the provision of Funded facilities is the task of Credit Operation Department.

    DETAILS REQUIRED ON GUARANTEE


    FBL generally asks for the following details on guarantee: Name and address of the applicant Name and address of the beneficiary Currency and amount of guarantee Terms of guarantee Expiry date of guarantee

    ENTRY IN GUARANTEE REGISTER


    A separate register known as guarantee register is maintained for recording guarantees issued by the Bank. Date, letter of guarantee number, name of the applicant, name of the beneficiary, commission, amount of LG and date of expiry are recorded in it and a running serial number is allotted to the guarantee there from.

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