When Trust Becomes a Risk: The Quiet Danger Inside Standby Letters of Credit
In the 1990s, a Canadian municipality issued a Standby Letter of Credit (SBLC) to a developer. No scandal. No breach of paperwork. On the surface, everything seemed to follow the rules. But something about the transaction felt… off. And this, as we now know, is the...
Beyond SWIFT: How Offshore and Sovereign Banks Can Move Capital Without the Network
In the world of high finance, there's one four-letter word that casts a long shadow over cross-border payments: SWIFT. The SWIFT network facilitates more than $5 trillion in daily financial transactions across over 200 countries. It's the bedrock of global banking....
Letter of Credit and Standby Letter of Credit: What’s the Difference?
TL;DR: Understanding the difference between a letter of credit and a standby letter of credit is essential for securing global deals. While LCs facilitate payment in trade, SBLCs act as a safety net against buyer default. Learn how each works and when to use them to...
Understanding Risk Weighted Assets in Modern Banking
TL;DR: Risk weighted assets (RWAs) help banks measure the risk of their holdings and determine how much capital they must keep in reserve. This impacts lending, financial stability, and investor confidence. Understanding RWAs is crucial for navigating credit,...
What Is a Bank Letter and How Do You Request One?
TL;DR: A bank letter is a custom document from your bank that confirms account details for loans, deposits, or proof of funds. Unlike a statement, it's created upon request for specific needs. Learn how to request one efficiently and when a more advanced instrument...
5 Critical Compliance Questions for Correspondent Banking Success
By a Senior Compliance Officer, International Bank Correspondent banking is the backbone of global finance, making cross-border payments possible for trade, remittances, and investments. But it's a high-risk zone for money laundering, sanctions violations, and...
Why Dubai’s Commodities Market Rejects SBLCs — And What Smart Capital Partners Do Instead
By Taimour Zaman, Founder, AltFunds GlobalIn most of the financial world, a Standby Letter of Credit (SBLC) is a signal of strength. Issued by reputable banks, it's widely accepted as proof of a client's ability to transact — a structured instrument that sits at the...
MT760: What It Is, Why It Matters, and How to Use It Properly in Global Trade Finance
Let me take you behind the curtain. After more than five decades in international banking and trade finance, I've come to learn that most deals don't fall apart because of bad numbers. They fall apart because someone didn't understand how banks commit capital. If...
What Is Credit Enhancement in Securitization — And How It Gets You Funded
Let’s be honest: most 27-year-olds (my younger analysts included) aren’t spending weekends googling “credit enhancement in securitization.” However, if you’re in business, finance, or trying to secure funding for your company, you need to know this. Because credit...