Bank Encyclopedia

C.D.C bank encyclopedia

Bank Encyclopedia

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

  1. Category 1 Messages: Customer Payments and Cheques
  2. Category 2 Messages: Financial Institution Transfers
  3. Category 3 Messages: Treasury Markets: Foreign Exchange and Derivatives
  4. Category 4 Messages: Collections and Cash Letters
  5. Category 5 Messages: Securities Markets
  6. Category 6 Messages: Treasury Markets: Precious Metals and Syndications
  7. Category 7 Messages: Documentary Credits and Guarantees
  8. Category 8 Messages: Travellers Cheques
  9. Category 9 Messages: Cash Management and Customer Status

There are risks of failure or refusal of one of the parties to fulfill its obligations to other party during the partnership at local and international level. The bank guarantee is widely used all over the world as a reliable protection of other party from financial losses.

1. Guarantee of payment. This type of guarantee is a security of payment obligations of Buyer to Seller.

2. Guarantees of advance payment return. This guarantee represents an obligation of the bank to return advance payment in the event that, after receiving an advance, the Seller does not perform its contractual obligations.

3. Contract execution guarantee. This guarantee is a security of timely delivery of goods or performance of services according to a contract.

4. Tender guarantees. This guarantee plays a role of security in those cases when the Company fails to perform its obligations to tender organization or other party that is stipulated in the order received by winning the tender.

5. Guarantee in favor of the customs authorities. This guarantee is a security of obligation of the company performing import and export operations to the Customs authorities for payment of customs taxes and duties.

6. Guarantees of warranty execution. This guarantee plays a role of security of quality for delivery to the contract terms.

7. Guarantee of credit return. This guarantee is a security for repayment of credit.

MT799 is an essential part of international trade; a ‘free format message’ sent between banks which confirms funds or proof of deposits on a potential trade. MT799 allows banks to communicate between each other freely through the SWIFT system, rather than being a mechanism for transferring funds or paying.