أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
Approval of Trade Finance Transactions from the credit point of view to ensure sufficiency of funds, availability of limits and to be in line with facility approved terms and conditions with the required New Import LC Application
Hi,
Its first the Sales team which if understands trade should satisfy self on all points and then give to trade finance. Credit Admin team is the one which finally gives a nod to the transaction when routed through the trade finance team.
I consider the query posed after considering the pre requisites for LC. Hence the competent authority in business should approve
As a banker i may say that there may be number of dept. involve in the whole procedure. First proposal is prepared by credit dept. then for further processing is made by the Head Office speciaiized staff. and then all the financial transactions concerning LC is posted by the concern branch staff (trade finance officer) as per approved limit.
Basic responsibility for provisioning of Limits is credits dept. as they analyze the credit worthness of customer so they are the one whose responsibility for allocation of Limits.
Trade Finance people approved the transaction from technical point of view, before it is presented to the credit administration to check same with the line of credit and limits and then approved by concerned credit officer in the credit department.
Hi Sir
First of all the person who incharge with must approve the letter of credit. I think from company to company it deffers. because their policies and procedures are also different. On some companies the international banking manager approve it. whereas on some companies Import division manager approves it. But the point is not who approved it or not, but the availability of currency (position of the bank)
Recommendations or a brief write up should be provided by he Corporate treasurer based on the proposal presented and the institutions financial strength before final approval given by the CFO or Director of Finance