国际结算(杨娟著)英文课件1

1、International SettlementJuan YangBNU Business SchoolContentsIntroductionInstruments of International SettlementRemittanceCollectionLetter of CreditOther methods of International SettlementDocuments Used in International SettlementPrice terms Why should we study this course in EnglishAll the document

2、s and working languages of international payments are in English.Lay down a good foundation for the future work.Chapter One IntroductionvConcept vCategory vBasic contentvEvolutionvPlayers and theirs roles1.1 Meaning of International Settlementthe financial activities conducted among different countr

3、ies in which payments are effected or funds are transferred from one country to another in order to settle claims and debts, emerged in the course of political ,economic or cultural contacts among them. Company AIn ChinaCompany BIn USAmoneymachine1.2 Category of international settlementTrade settlem

4、ent: payments for visible tradesNon-trade settlementTrade settlement: payments for visible tradesIn the process of international trade, at the heart of every business transaction is the buyer and the seller.Both parties have one thing in common: to profit from the transaction and to expose themselve

5、s to the least risk possible.Non-trade settlement:invisible trade settlement：payments for services, technology transfer, patents and copyright contracts, etc financial transaction settlement：buying and selling of financial assets, overseas money-raising and investingpayments between governments: aid

6、s and grantsothers: overseas remittances, inheritances, etc1.3 Basic content of international settlementPayment methods, financial instruments and commercial documents are the three important and closely related parts in international settlement.1.3.1 Payment methodsPurchase/sales contractFor the se

7、ller: it imposes an obligation to deliver the contracted goods at the time and in the place and in the manner provided for in the contract with a matching right to be paid at the time, in the place and in the manner agreed on in the contract.For the buyer: it gives a right to receive the goods contr

8、acted, at the time, in the place and in the manner provided for in the contract, plus an obligation to make payment, at the time, in the place and in the manner provided for in the contract.Payment methods to solve “when”, “where” and “how”.(i) RemittanceRemittance: transfer of funds from one party

9、to another among different countries.Payment in advance: the buyer places the funds at the disposal of the sell prior to shipment of the goods or provision of services.Open account: also called sale on credit, means an arrangement between the buyer and seller whereby the goods are manufactured and d

10、elivered before payment is required.(ii) CollectionAn arrangement whereby the goods are shipped and the relevant bill of exchange is drawn by the seller on the buyer, and documents are sent to the sellers bank with clear instruction for collection through one of its correspondent banks located in th

11、e domicile of the buyer.Clean collection, documentary collection(iii) Letter of creditAn undertaking issued by a bank for the account of the buyer (the applicant) or for its own account, to pay the beneficiary the value of the draft and/or documents, provided that the terms and conditions of the doc

12、umentary credit are complied with.(iv) Bank guaranteeA written promise issued by a bank at the request of its customer, undertaking to make payment to the beneficiary within the limits of a stated sum of money in the event of default by the principal.1.3.2 Financial instrumentsFinancial instruments

13、mainly refer to bills of exchange, promissory notes and check.These instruments are the orders given to the bank by one trader who asks the bank to make/collect payments to/from the other trader.1.3.3 Commercial documentsThe main commercial documents include commercial invoice, packing list, bill of

14、 lading, insurance policy, inspection certificate and certificate of origin.It is the documents, not goods that relevant parties are dealing with.1.4 Evolution of international settlementFrom cash settlement to non-cash settlementFrom goods trading to documents tradingFrom direct payment between tra

15、ders to payment effected through a financial intermediary safety, high efficiency, low cost, standardization Electronic settlement SWIFT CHIPS CHAPS FEDWIRE TARGETSWIFTSociety for World Inter-bank Financial Telecommunication环球同业银行金融电讯协会环球同业银行金融电讯协会 7000 financial institutions in 192 countries based

16、in the Netherlands, Hong kong, UK and US Founded in 1973, BrusselsFunctions:Provide messaging services to banks, broker-dealers and investment managers, as well as to market infrastructures (means here clearing and settling house) in customer transfer, international trade payments, collections, secu

17、rities, foreign exchange transactions, precious metals and syndication and so on.Characters:Faster, more reliable communicationReduced transaction errorsLower transmission costsGreater efficiencyBetter statisticsIncreased securityCHIPSClearing House Inter-bank Payment SystemCHAPS-BritainClearing Hou

18、se Automated payment SystemTARGETTrans-European Automated Real-time Gross Settlement Express Transfer SystemFED WIREFederal Reserve Wire Transfer SystemExporter to get prompt payment; minimize non-payment risksImporter to receive goods as ordered; pay as late as possibleFinancial intermediary to max

19、imize revenues; credit risks associated with financing extended to buyers or sellers1.5 Players and their roles1.5.1 Factors in the payment decisionTo exporters:v protection against non-payment risks by the importers, such as: commercial risks, financial risks; political risks; risks in control of t

20、itle to the goods,etc.v convenience; v cost; v commercial competitiveness1.6 Financial intermediaryCorrespondent banks Some organizations relevant to international settlementBanking institutionsDefinition of correspondent bankServices provided by correspondent bankControl documentsInter-bank account

21、s How to select the best bank 1.6.1 Correspondent banksRepresentative office(代表处)Agency（代理处） Foreign branch bank（分行）Correspondent bank（代理银行）Subsidiary bank（附属银行）Affiliate bank（联营银行）Consortium bank（银团银行）Banking institutionsRepresentative office(代表处)Lowest levelNo right to do bank businessMain functio

22、n public relations (provide information for both countries)Agency（代理处） Transfer funds, provide loan, L/C, remittance could not do deposit businessForeign branch bank（分行）Could do deposit businessNot an independent companyCorrespondent bank（代理银行）the basis for cooperation of commercial banks all over t

23、he world to fulfill international settlement “a bank having direct connection or friendly service relations with another bank.” Subsidiary bank（附属银行,子银行）When a bank cannot set up branch institutions abroad, it will generally buy all or most of the stocks of a foreign bank. Could do all the related b

24、usiness that local bank could work on. An independent bankAffiliate bank（联营银行）The stocks are processed by several investors in different countries and not a single investor in a particular country could own more than 50 percent stocks.An independent bank Consortium Bank （银团银行）A bank set up by severa

25、l banks that may be headquartered in different countries. Consortium banks are commonly formed in Europe. A consortium is created to fulfill a specific project or goal or to complete deals, such as selling loans for a client in the loan syndication market. When the deal is completed, the consortium

26、bank disbands. Correspondent bankFunctions:Collecting checks, drafts, and other credit instruments;Making loan or investments as agents for their customer bank;Making credit investigations on firms that borrow in open market;Providing banks with foreign exchange facilities;Providing banks with funds

27、/loans in case of need. Correspondent arrangementControl documentsSpecimen of authorized signatures（印签样本）Telegraphic test key/SWIFT authentic key (密押)Schedule of terms and conditions（费率表）Establishment of a correspondent bankCorrespondent bank relationship and inter-bank account relationshipNostro (往

28、帐) and vostro (来帐) accountInter-bank accountsBank ABank BBank ABank BCurrent a/cCurrent a/cCurrency: bank BCurrency: bank ANostro: our a/c with youVostro: youre a/c with usInter-bank account is similar to depositor open an account in a bankHere depositor is a depositor bankSamples of reimbursement m

29、ethods eg: “In cover, we have credited the sum to your account with us.”;Means: increase some money in your Vostro account “Please debit the sum to account with you.”Means: decrease some money in your Nostro account Case studyMr. John Smith was a graduate of Michigan Medical College. Now he is a ped

30、iatrician working for a childrens hospital. His address is Wooster Street 83 New York. He maintains a current account (A/C 818140772) in USD with the Citibank NA, New York. The hospital transfers salary payment monthly to Mr. John Smiths account.Upon receipt of payment from the hospital, the Citiban

31、k makes the credit to Mr. John Smiths A/C, issuing him a credit advice at the same time in the purpose of informing his the arrival of funds.For example: on April 3, 1996, the childrens hospital made a book transfer at the Citibank New York in the amount of USD 4500 to A/C 818140772 in favor of Mr.

32、John Smith. The Citibank New York debited the A/C of the childrens hospital and paid USD 4500 to themselves for crediting Mr. john Smith valuing April 3, 1996. After the entries were posted, the Citibank mailed the credit advice to Mr. John Smith at the given address of Wooster Street 83 New York co

33、nforming USD 4500 had been credited to the A/C.A credit advice should include the following items: title, payer, beneficiary, amount& currency, calue date and memp CREDIT ADVICEDATE:060403BENEFICIARY: Mr JOHN SMITH, WOOSTER STREET 83 NEW YORK 10026PAYER: THE CHILDRENS HOSPITAL N.Y.MEMO: SALARY O

34、F APRIL 06WE HAVE CREDITED YOUR A/C 818140772 VALUE 4500 FOR THE CITIBANK NA NEW YORK.代理行合作协议式样代理行合作协议式样Agency arrangement reputation and creditworthiness; size and financial status; location; services offered by it; polices and strength of it; physical features and personnel; momentum of early star

35、tSelecting a correspondent bank1.6.2 Some organizations relevant to international settlementIMFThe World Bank GroupThe International Chamber of CommerceThe ICC Commission on Banking Technique and Practice A payment system is the means whereby cash value is transferred between a payers bank account and a payees account. It includes: 1) policies and procedures, including rules for crediting and debiting balance; 2) a medium for