Glossary
Comprehensive directory and searchable definitions for alternative finance, bank debentures, and trade facilities.
Search Banking Instruments & Trade Glossary
Search 20 authoritative records covering Bank Guarantees, MT760, URDG 758, SBLC, and collateral transfer mechanisms.
Leasing of Bank Guarantees
Glossary Leasing of Bank Guarantees Leasing is not really the correct term to use as it is not possible to actually lease a bank guarantee in this manner. It is...
Discounting a Bank Guarantee
Glossary Discounting a Bank Guarantee Discounting is a financial term. It means for a debtor to delay payment to a creditor for a given period of time by paying...
CUSIP & ISIN
Glossary CUSIP & ISIN CUSIP stands for Committee on Uniform Securities Identification Procedures. ISIN stands for International Securities Identification Nu...
URDG 758
Glossary URDG 758 URDG 758 (Uniform Rules for Demand Guarantees) are a set of contractual rules that apply to demand guarantees and counter-guarantees. As the U...
MT799 Explained
Glossary MT799 Explained In dealing in Bank Guarantees (Demand Guarantees) and Letters of Credit (Documentary Credits), one may hear the phrase ‘MT799’. This is...
MT760 Explained
Glossary MT760 Explained In dealing in Bank Guarantees, one may hear the phrase ‘MT760’. This is the SWIFT message type banks use to issue or advise demand guar...
Advice
Glossary Advice This page provides guidance for individuals, businesspeople and intermediaries who need to understand bank guarantees. All information on this s...
Types
Glossary Types There are different types of Bank Guarantees, each worded for specific events and purposes. There are effectively two main types of Bank Guarante...
Who Leases Bank Guarantees?
Glossary Who Leases Bank Guarantees? Traditionally, sophisticated investors who hold large portfolios of assets such as medium- to long-term bonds generating lo...
What Is a Bank Guarantee?
Glossary What Is a Bank Guarantee? A Bank Guarantee is where one Bank (the Issuing Bank) issues an indemnity to another Bank (the Beneficiary Bank) or directly ...
Characteristics of Bank Guarantees
Glossary Characteristics of Bank Guarantees Some important characteristics of Bank Guarantees should be noted: Bank Guarantees are written for a specific purpos...
Bank Guarantee: Purchase
Glossary Bank Guarantee: Purchase Purchasing Bank Guarantees should not be confused with ‘leasing’ them, which is possible under certain conditions. Bank Guaran...
Cash-Backed Bank Guarantee
Glossary Cash-Backed Bank Guarantee The term ‘cash-backed’ Bank Guarantees is another misnomer. Whether a Bank Guarantee is issued on the strength of the instru...
The Risks of Bank Guarantees
Glossary The Risks of Bank Guarantees Issuing and Receiving Bank Guarantees: Risk for the Issuer of a Bank Guarantee The risks of issuing a Bank Guarantee are s...
Safekeeping Receipt (SKR)
Definitions Safekeeping Receipt (SKR) A Safekeeping Receipt is issued when an asset owner elects to place that asset in the care of an Agent (in custody with a ...
Certificate of Deposit (CD)
Definitions Certificate of Deposit (CD) A CD is a savings certificate entitling the bearer to receive interest. A CD bears a maturity date and a specified fixed...
Bank Guarantee (BG)
Definitions Bank Guarantee (BG) A Bank Guarantee (MT760) is an irrevocable commitment issued by a bank on behalf of its client who has concluded a contract to b...
Standby Letter of Credit (SBLC)
Definitions Standby Letter of Credit (SBLC) A Standby Letter of Credit (MT760) is a bank’s written commitment to pay a certain amount of money on behalf of the ...
Medium-Term Note (MTN)
Definitions Medium-Term Note (MTN) An MTN is a tradable and discountable debt instrument issued by banks, paying annual interest until it matures at a specified...
Documentary Letter of Credit (L/C, DLC)
Definitions Documentary Letter of Credit (L/C, DLC) A Documentary Letter of Credit (L/C, DLC) is a bank’s obligation to pay the seller of goods or services a ce...