商业银行管理 peter rossChapter09.pptVIP

* * * * * * * * Reasons for Growth of SLCs Rapid Growth of Direct Financing Worldwide Risk of Economic Fluctuations has led to Demand for Risk-Reducing Devices Opportunity SLCs Offer Lenders to Use Their Credit Evaluation Skills to Earn Fee Income Without the Immediate Commitment of Funds The Relatively Low Cost of Issuing SLCs 9-* Structure of SLCs Three Essential Elements: Commitment From Issuer An Account Party – For Whom the Letter is Issued A Beneficiary – Investor Concerned About Funds Committed to Account Party 9-* Sources of Risk with SLCs Default Risk of Issuing Bank Beneficiary