International banking ,BG ,LC and International tradefinance

Examine fund-based and non-fund-based facilities, where a letter of credit guarantees seller payment and follows contract, issuance, document flow, shipment, and payment steps.

Explore letters of credit, or documentary credit, as the primary instrument for settling international payments, detailing the roles of issuing, advising, conforming, and nominated banks, plus transferring and reimbursing banks.

Explore how letter of credit documents govern trade payments, from bill of exchange to bill of lading, commercial invoices, transport documents, insurance, and origin certificates under PDC 600.

Identify fraud risk indicators in letters of credit, such as mismatch seller lists and related-party deals, and outline bank safeguards—sanction limits, due diligence, and end-use monitoring.

Explain the tracked letter of credit format, detailing irrevocable and transferable options, lc number, issue date and parties, currency, amount, shipment terms, documents, charges, and presentment.

Defines bank guarantees as a comfort the bank issues to a beneficiary, promising payment if a buyer fails to meet contract terms; highlights invocation, margin money, and the three-party structure.

Examine bank liability based on guarantee amount and period, including tax inclusions and invocation within validity and claim periods, plus the deferred payment guarantee (DPG) for installments on capital goods.

Explore the main bank guarantees in international trade finance. Learn about in-depth types such as financial, export, tender, advance payment, and performance guarantees.

Compare a letter of credit, which guarantees payment on due terms, with a bank guarantee, which pays only if the customer defaults; LC is common in imports and exports.

Explore the bill of lading as a document of title and documentary receipt, its negotiable and non-negotiable forms, and compare it with the air waybill in air transport.

Understand bill of exchange is a negotiable instrument for payments, issued by seller to bind buyer to pay later; bill of lading lists goods and destination as receipt and contract.

Explore the bill of lading format for ocean transport, detailing shipper and notify parties, vessel and voyage details, ports, goods description, weights, charges, and duplicate copies signed by the carrier.

Discover payment methods in international trade: cash in advance, bias credit, suppliers credit, letters of credit, and documentary collection, and weigh their risks and benefits for exporters and importers.

Apply factoring and forfaiting to convert export accounts receivable into cash, offering 100% protection. Preserve cash flow for small and medium exporters and reduce payment risk with these tools.

Explore documentary collection and open account methods in international banking, detailing remitting and collecting banks, payment on sight or terms, title transfer, and related risks and benefits.

International banking enables cross-border, cross-currency transactions for traders, corporates, and multinationals, emphasizing expansion, regulatory frameworks, cost of capital, and trade finance.

Explore the Bretton Woods system and the IMF and World Bank, with fixed parities against the US dollar, gold convertibility, special drawing rights, and International Trade Organization.

Explore the Bank for International Settlements role in Basel II and Basel III, central bank cooperation, and collateralized short-term credit, plus the 1974 Herstatt crisis and interbank risk.

Basle concordat marks international bank supervision cooperation, defining host and parent responsibilities, then Basle I and Basle II pillars; this module explains syndicated credit and governing law and jurisdiction clauses.

Define risk as uncertainty that can cause loss or gain, and explore key banking risks—credit, liquidity, legal, regulatory, operational, interest rate, foreign exchange, and cross-border—within Basel norms' three categories.

Learn how Basel norms coordinate international banking regulation to strengthen the global banking system, and how the Basel Committee sets prudential standards addressing bank risk and capital.

Examine how credit risk from borrower default leads to liquidity risk and asset-liability mismatch, and to market risk from interest-rate moves.

Analyze how a swap and spot forex deal causes a shortage of funds in a nostro account, exposing credit risk, liquidity risk, and market risk under basal norms.

Develop a risk management policy approved by the board, aligned with regulators and legal framework, supported by an integrated MIS and clear demarcation of function and authority, and set limits.

Basel II, published in 2004 by BCBS, refines Basel I and rests on three pillars: capital adequacy requirement, supervisory review, and market discipline.

Basel-2 sets a capital adequacy requirement of eight percent of risk assets, emphasizes supervisory review, and market discipline via disclosure of credit risk exposure to central bank, including operational risk.

Explore Basel I and Basel II frameworks, the Basel Committee on Banking Supervision (BCBS) capital accord, and 8% risk-weighted capital, plus the three pillars: minimum capital, supervision, and market discipline.

Introduce Basel iii to strengthen banks after the 2008 crisis by raising capital adequacy, tier 1 and tier 2 ratios, buffers, and liquidity measures such as lcr and nsfr.

This lecture explains two aspects of financial analysis in international banking: analyzing customers' financials before lending, and analyzing the bank's own statements to assess financial health.

Evaluate customer financials by analyzing balance sheets and income statements, assessing assets (current, fixed, intangibles), liabilities, and P&L metrics to guide banking decisions.

Learn how financial statements—balance sheet, income statement, and cash flow—reveal a bank's assets, liabilities and net worth, enabling financial analysis, auditing, and investor insight.

Explore fundamental accounting concepts and conventions, including accrual concept, consistency concept, separate entity concept, going concern concept, prudence concept, and materiality concept, used to prepare and present financial statements.

Explore the four characteristics: understandability, relevance, reliability, comparability, and assess limitations such as outdated data, changes in management, key customers, future prospects, and unaudited or audited statements.

Apply horizontal analysis to compare two or more years and use common size, trend, and ratio analysis to assess balance sheets and income statements.

Explore methods for comparing banks’ financial statements, including common size statements, trend analysis, and ratio analysis across six categories: long-term solvency, short-term solvency, profitability, asset management, operation, and market ratios.

Compare comparative statements and common size statements to analyze past and current results using horizontal and vertical analyses, percentages, and inter- and intra-firm comparisons for internal decision making.

Examine a comparative income statement across two years, detailing net sales, cost of goods sold, gross profit, selling expenses, operating income, income before tax, income tax expense, and net income.

Learn how to create a common size income statement using vertical analysis, expressing each item as a percentage of sales revenue with a practical example.

Explore long-term solvency ratios: debt equity ratio, shareholders equity ratio, debt to net worth, capital gearing, and proprietary ratio to assess a bank's financial strength.

Explore long-term solvency ratios, also called capital structure ratios, from equity ratio to debt-to-equity and debt-to-total assets, highlighting owners' fund proportion and lender risk.

Introduce short-term solvency ratios, including current ratio, quick ratio, and absolute liquid ratio, and explain how they relate current assets to current liabilities to gauge a bank's liquidity.

Assess liquidity and short-term solvency using current, quick (acid test), and cash ratios, plus basic defense interval and net working capital, based on current assets and current liabilities.

Explore profitability ratios in banking, such as return on capital employed, earnings per share, cash earnings per share, gross and net profit margins, and return on assets and equity.

Explore profitability ratios such as gross profit ratio, net profit ratio, operating profit ratio, expenses ratio, and returns on investment, assets, capital employed, and equity.

Explore profitability ratios including return on investment, return on assets, return on capital employed, and return on equity, with formulas and how turnover and asset use drive roe.

Identify the four key activity ratios: inventory turnover, debt to turnover, bad debts to sales, and asset turnover. Explain how each assesses inventory quality, debt velocity, and asset-driven sales.

Understand activity ratios, or efficiency ratios, that measure asset utilization through turnover metrics such as total asset, fixed asset, net asset, current asset, and inventory turnover.

Explore the market test ratios: dividend payout ratio, dividend yield ratio, book value ratio, and price-earnings ratio. See how they influence investor returns, earnings, and company valuation.

Examine market test ratios and profitability measures, such as eps, dps, dividend payout, price-earnings ratio, dividend yield, earnings yield, mv/bv, and Tobin's q, to assess investor prospects.

Explore the DuPont model, a financial analysis tool linking earning power to profit margin and capital turnover. It defines capital employed as working capital plus fixed assets.

Learn key banking terms such as aggregate deposits, average working funds, net worth, total debts to net worth ratio, gross advances, investments, interest and non-interest income, and NPA ratio.

Discover how to gauge a bank's health using gross non-performing asset, net non-performing asset, provisioning coverage ratio, capital adequacy, casa ratio, credit-deposit ratio, and net interest margin.

Describe the camels rating system used by bank supervisors to evaluate financial institutions across six factors—capital adequacy, asset quality, management, earnings, liquidity, and sensitivity—on a 1 to 5 scale.

Calculate earnings per share, book value per share, dividend payout ratio, and price earning ratio from the given data, noting eps 2.5, bvps 12.5, dpr 0.6, and p/e 5.2.

Compute gross profit from revenue 340,000 minus cost of revenue 120,000 to obtain 220,000 and a gross profit ratio of 64.71%. Then derive operating cost 240,000 and operating ratio 70.59%.

Calculate the trade payables turnover ratio by dividing net credit purchases (12 lakh) by the average trade payables (3 lakh) derived from opening and closing bills payable and creditors, yielding four times.