Transcript What is International Settlement

Chapter 1
What is International Settlement ?
专业PPT/商演示设计制作
Overview of the text book
Part IV International Trade Finance
• Import Trade Finance
• Export Trade Finance
Part III Documents
• Commercial Invoice
• Transportation Docs
• Insurance Docs
International
settlement
Part I Instruments
• Bills of exchange
• Cheques
• Promissory Note
Part II Payment Methods
• Remittance
• Collection
• Letter of Credit
• Bank Guarantee &Standby Credit
Definition of International Settlement
 International settlement refers to the money transfer
via banks to settle accounts, debts and claims among
different countries.
 It divided into two types:
1、international trade settlement
2、Non-international trade settlement
Development of International
Settlement
Cash Settlement
Direct Payment
Non-cash settlement
Indirect Payment
Simple price terms
Paper documents
Complex price terms
Electronic document
Related international customs and
practice
 As to instruments
1、UK Bill of Exchange Act of 1882
2、Uniform Law for Bill of Exchange and Promissory
Notes of Geneva of 1930
 As to payment methods:
1、Uniform Rules for Collection,ICC Publication No.522
2、Uniform Customs and Practice for Commercial Documentary
Credits, ICC Publication No.600
Correspondent banking relationship
 Create a bank’s own foreign presence
Banking
institution
Foreign
Representative
branch
Agency
office
bank
Subsidiary
bank
Affiliate
bank
Consortium
bank
Correspondent banking relationship
 Establishment of correspondent banking relationship
1、Exchange the control documents
Authorized signatures
Telegraphic test keys
Schedule of terms and conditions
SWIFT authentic key
2、Sign a cooperate agreement or an agency
agreement
Office concerned
Control documents
Currency for tansactions
The methods to remit covers and claim reimbursement
Other items
Thank you