Custodian of Rights and Values
Custodian of Rights and Values
As custodian bank we are responsible for safeguarding individual financial assets on which we organize settlement of any purchases and sales and deliveries in/out of titles formalized as Standby Letter of Credit or Bank Guarantees in deposit, of which we collect income and administer related tax withholding documents and foreign tax reclamation.
The Standby Letter of Credit (SBLC) as well as the Bank Guarantee serves to secure payment and performance obligations and moreover demonstrate the client's repayment abilities and prove his solvency and credit worthiness towards his business partners.
It is a payment guarantee generally issued by the bank on behalf of a client (the applicant) securing payment to a third party (the beneficiary).
It has its roots in American banking law and is used mainly in international business; the S.B.L.C. do not have CUSIP or ISIN numbering and are not trading securities, trading debt instruments, or trading investment funds, and therefore are not subject to the rules and regulations of the Security and Exchange Commission.
Standby letters of credits is based on the uniform customs and practice for documentary credits. In 1998 the International Chamber of Commerce (ICC) added ISP98 (International Standby Practices 98) as the rules to guide standby letters of credit.
Bank Guarantees are facilitated in international trade transactions, as collateral and as credit enhancement instruments.
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