• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.47
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• pp.107-127
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• 2010

This work intends to study the obligations and liabilities of advising bank in UCP 600. An advising bank has two big obligations as follows : by advising the credit or amendment, the advising bank signifies that it has satisfied itself as to the apparent authenticity of the credit or amendment and that the advice accurately reflects the terms and conditions of the credit or amendment received. An advising bank may utilize the services of another bank("second advising bank") to advise the credit and any amendment to the beneficiary. If a bank is requested to advise a credit or amendment but elects not to do so, it must so inform, without delay, the bank from which the credit, amendment or advice has been received. An advising bank has some problems in connection with the delay of advice and the advice of forged letter of credit.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.451-458
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• 2021

The objective of this research is to analyze the effect of bad credit and liquidity on bank performance with the mediation of capital adequacy. Data were provided by banking institutions listed on the Indonesia Stock Exchange from the period of 2011-2019. The analysis technique was PLS-SEM supported by an application named WarpPLS 6.0. The results of the research show that the effect of bad credit and liquidity on bank performance is not significant. A high level of bad credit is associated with a low level of bank performance. Bank earnings decline along with low profitability. This relationship is not significant because banks can still cover some proportions of bad credit through capital availability. Capital adequacy as an intervening variable has mediated partially the effect of bad credit and liquidity on bank performance. Besides, capital adequacy has a strong effect on credit distribution. Agency theory says that the owner of the fund (the savers of saving account, current account, deposit account) is called principal while the bank as the trusted institution to manage the fund is called an agent. If customers fulfill their duty, then bad credit never happens.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.303-314
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• 2020

This paper investigates the relationships between bank credit and trade credit with profit of 130 agricultural firms listed on Vietnam's stock exchanges during the period 2008-2014. Using the GMM approach, the paper reveals inverted-U shaped (∩) relationships between bank credit and trade credit with profit. Specifically, the optimal threshold of bank credit and trade credit to total assets of the firms are 0.4173 and 0.2425, respectively. The findings mean that if the ratio of bank credit to total assets exceeds the benchmark of 0.4173, firms should consider restructuring debts to get them back to the benchmark. To do so, firms should withdraw from those business fields that are not of their profession, in addition to liquiditizing unused assets to repay debts and not using short-term credit to invest in long-term projects. Firms may use trade credit wisely when other sources of finance are lacking. In concrete terms, firms can increase trade credit use if the ratio of trade credit to total assets is below 0.2425. Yet, if this ratio goes beyond this benchmark, firms should get back to this benchmark, e.g., keeping a suitable amount of inventory. The implications of this study is to boost firm growth in the proposed way.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.76
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• pp.77-101
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• 2017

This article provides the definitions of the negotiation of credit, the negotiating bank and the negotiation credit. It further describes a number of legal status of negotiating banks by looking into the legal relations firstly between the beneficiary and the negotiating bank and secondly between the issuing bank and the negotiating bank. This study is in large part based on relevant provisions of UCP 600 and decisions of the Supreme court of South Korea. Under UCP 600 the definition of negotiation requires the purchase by the nominated negotiating bank of the required documents by advancing funds on or before the banking day on which reimbursement is due to the negotiating bank. A negotiation credit authorizes the negotiating bank who is a nominated bank to purchase from the beneficiary the documents required by the letter of credit and to present those documents to the issuing bank for reimbursement. If the credit is to be honoured at sight, reimbursement is due when the issuing bank determines that there has been a conforming presentation. Reimbursement under a letter of credit available by acceptance or by deferred payment is due at maturity of the credit. In particular, while the timing of advance by the nominated negotiating bank is up to the parties, a promise of the negotiating bank to advance the purchase price to a fraudulent beneficiary does not confer immunity from letter-of-credit fraud prior to its performance. This requires the negotiating bank who is notified of material fraud prior to making an advance to beneficiary to avoid a loss by using the fraud.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.46
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• pp.159-177
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• 2010

This work intends to study some problems in relation to the issuance of letters of credit. Those problems are the delay of issuing letters of credit, the reissuing letters of credit, and the issuing letters of credit in the third party's name. Sellers and buyers must keep in mind that the supply of letter of credit by buyer is the condition precedent for a seller's shipment obligation. A seller has no obligation to ship the goods until he receives the letter of credit by buyer's bank, issuing bank. An issuing bank can have the risk that an original letter of credit and a reissued letter of credit can be used double in the exporting country. The most safe method for issuing bank is to cancel the original letter of credit and to reissue a new letter of credit. When an issuing bank issues a letter of credit in the third party's name, the bank should investigate the background of the transaction and give the buyer a proper line of credit.

• Journal of Fisheries and Marine Sciences Education
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• v.28 no.5
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• pp.1209-1219
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• 2016

In knowledge based society, lifelong learning is increasing in order to meet educational needs of adult learners. Credit Bank system which is credited by individual experience, learning and qualifications are also emphasized for continuing learning participation. However, in spite of the importance of concern in the Credit Bank System, adult learners expectation and value are not high. The purpose of this study is to analyze participation valence and learning flow of adult learner in the Credit Bank System. The result of this study is summarized as follows: first, adult learners participated in the Credit Bank System to get new knowledge and skill based on internal and external motivation and requirement not involved with individual degree. Second, adult learners participating in the Credit Bank System are experiencing learning flow realizing that behavior of participation is compensated, adult learners are concentrating and feeling with satisfaction and pleasure to study. Third, participation in the Credit Bank System based on adult learner's own right learning requirement have been analyzed as it has a positive effect to the learning flow and have indicated that adult learners having high level of valence experience, recognition immersion, behavioral devotion, and egoistic immersion. Based on the conclusion, further studies are suggested.

• Journal of Arbitration Studies
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• v.22 no.3
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• pp.119-139
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• 2012

In the case of Banque Paribas V. Banco Santander in England for the reimbursement request of deferred payment credit by the nominated bank, the L/C-issuing bank refused to pay the proceeds at maturity because of a fraudulent transaction. The reason of refusal was that the nominated bank, Banco Santander, had no right of payment in deferred credit before its maturity if it made payment of proceeds without notice to the issuing bank, that is, payment not based upon a credit transaction but on its own account. However, in the case of ADIB V. Fortis Bank in America, the New York court made the decision that the deferred payment bank could not refuse to reimburse to the nominated bank, Fortis Bank, because of fraud. Its decision was based on the UCP600. We have analyzed and investigated the above two cases-one was an English court's decision and the other an American's. The English court's decision was made under UCP500, but the American court's was made under UCP600, which was revised in 2007. As a result, we can expect that from now on in deferred payment credit transactions, the power of the nominated bank will be greater than before, but the issuing bank will bear the risk of the beneficiary's fraud, so the issuing bank will be hesitant to issue deferred payment credit. Notwithstanding, we thought that the New York court decision would come into effect in the activation of deferred payment credit in practical trade transactions.

• Journal of Fashion Business
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• v.19 no.6
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• pp.74-81
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• 2015

The purpose of this study is to analyze the operation situation & academic research trends in Seoul and Gyeonggi area, based on theoretical consideration on academic credit bank system, focusing on academic credit bank system where a lifelong education institute affiliated with a university produces graduates with associate's degree. To find out about how academic credit bank institutes are operated in cosmetology field, the analysis of literature review was used, in reference to the literatures as well as administrative data from the Ministry of Education and institutes for lifelong education with respect to academic credit bank system. Further, dissertations and articles in journals were also reviewed for analysis, in order to see academic research trends with respect to academic credit bank system in cosmetology, and finally to provide the directions for a follow-up study in the future. It was found that about 120 junior colleges have cosmetology departments, while only about 20 4-year universities have them, where lifelong education systems such as lifelong education are essential for learners to have bachelor's degree to go to a graduate school in reality. Every year more people want to learn and acquire the degree through a lifelong education institute affiliated with a university. In this regard, it is thought that there should be first positive social awareness towards a degree recipient from such educations and more administrative promotion and active engagement of government, businesses and schools, in order to vitalize academic credit bank system. Meanwhile, there are only about 10 academic literatures including the dissertations on the operation of academic credit bank system with respect to cosmetology, which is not sufficient number in academic research, compared to the increasing number of people who want to acquire the degree. Most of the preceding studies have been limited to education services and learners' satisfaction level. Therefore, continuous follow-up study is required on how to improve social awareness as well as teachers and instructors' satisfaction level, as well as how to develop industry-customized curriculum, in order to ensure active academic credit bank system.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.7
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• pp.81-91
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• 2022

The aim of this paper was to analyze the determinants of the extent of individual credit rationing at Can Tho Military Commercial Joint Stock Bank (MB). The data was collected from 150 customers according to the systematic random sampling method listed in the bank. This study employed quantitative analysis methods, and Tobit regression model, to test the proposed hypotheses. The results showed that the average loan amount of an individual customer was 1,181.3 million VND, the average credit limit was 48.6%, and the average interest rate was 10.9% per year. Most of the individual customers borrowed money to buy properties. In addition, the analysis results also indicated that individual borrowers still faced some difficulties in accessing bank credit, such as cumbersome procedures, long waiting times, insufficient collateral assets, and loan documents. The results of the Tobit model pointed out that there were five factors affecting the degree of credit rationing to individual customers at the bank, including (1) Collateral, (2) Income, (3) Credit history, (4) Loan purpose, (5) Relationship between borrower and bank. Based on the empirical findings, the possible solutions for the bank and individual borrowers to improve credit efficiency for individual customers at commercial banks are obtained.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.12
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• pp.461-494
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• 1999

This study is to analyse the applicability of governing law in multi-party contractual relationship of letter of credit. And this study is also to suggest the limits of the possibility of applicable law in multi-party contract. The contract of letter of credit constitutes complex relationship, i.e., applicant -beneficiary, applicant-issuing bank, issuing bank-intermediary bank ect. The law applicable to letter of credit should not use a singular governing law in all credit transaction as sales contract. To solve these problems, the author analysed the law applicable to the credit under multi-party contractual relationship as follow : (1) the principle of party autonomy (2) In the absence of express agreement with regard to the law applicable to the contract, lex loci contractus, lex loci solutionis, the law intended by the parties, the law with which contract is most closely connected. Accordingly, when attempting to ascertain the law governing the credit, it should be borne in mind that the credit involves several contractual relationships. I would like to conclude as follows: 1. The contract between the applicant and the Issuing bank is to be governed by the law of the country where the contract is made, and in which the bank carries on business and has issued the credit. 2. When it comes to the beneficiary-Intermediary bank relationship the following rule is given : The liability of an intermediary bank to the seller is governed by the law the country where the intermediary bank is operating if it is acting as principal. If, however, it is acting as agent(advising bank), it will be the law of the country where his principal is situate. 3. The contract between the beneficiary and the Issuing bank is governed by the law of the country where the payment is to be performed. 4. The contract between the Issuing bank and Intermediary bank is governed by 1) the law of the issuing bank is applicable if the intermediary bank only advises the credit, 2) the law of the issuing bank is applicable but if the intermediary bank makes payment, accepts or negotiates drafts against the tender of the documents, i.e., act as the bank dffecting the payment., 3) the law of the confirming bank is applicable if the irrevocable letter of credit is confirmed by the intermediary bank