Letter of credit and International Electrotechnical Commission: Difference between pages

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(Expand and add links. Source: Voxeu.org Trade Finance Around the World http://voxeu.org/article/trade-finance-around-world)
 
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(LC or sometimes LOC).  
''Treasury - information technology - artificial intelligence - standards.''


A promise document issued by a bank or another issuer to a third party to make a payment on behalf of a customer in accordance with specified conditions.  
(IEC).


Letters of credit are frequently used in international trade to make funds available in a foreign location.
The International Electrotechnical Commission is established to support high quality infrastructure and international trade in electrical and electronic goods.


It develops and publishes IEC International Standards that provide instructions, guidelines, rules or definitions that are then used to design, manufacture, install, test & certify, maintain and repair electrical and electronic devices and systems.


''(Source - IEC.)''


==== Letter of credit contrasted with documentary collection ====
Letters of credit are often contrasted, from the perspective of a seller, with an alternative structure of [[documentary collection]]s.


A letter of credit is a ''direct'' obligation of a bank to pay (against specified documents).
== See also ==
* [[Artificial intelligence]]
* [[Artificial Intelligence Management System]]  (AIMS)
* [[Artificial super-intelligence]]  (ASI)
* [[Augmented reality]]
* [[British Standards Institution]]  (BSI)
* [[ChatGPT]]
* [[Data]]
* [[Deepfake]]
* [[Ethics]]
* [[Fourth industrial revolution]]
* [[Google Gemini]]
* [[Governance]]
* [[Hallucination]]
* [[HLEG]]
* [[Human-in-the-loop]]
* [[Information technology]]
* [[International Electrotechnical Commission]]  (IEC)
* [[Internet of Things]]
* [[ISO]]
* [[ISO 27001]]
* [[ISO 42001]]
* [[Machine learning]]
* [[Quantum computing]]
* [[Robotic process automation]]
* [[Robotics]]
* [[Software robot]]
* [[Standard]]
* [[Technological singularity]]


A documentary collection means a bank ''collecting'' payment from the buyer (by presenting documents to the buyer).
A letter of credit therefore gives superior protection to the seller against credit risk or delayed cash flow, or both.
For this reason letters of credit are more expensive to arrange.
Compared with documentary collections (DCs), letters of credit are used for larger transactions, and a larger total value of transactions.
== See also ==
* [[Advising bank]]
* [[Bank payment obligation]]
* [[Clean letter of credit]]
* [[Commercial risk]]
* [[Condition]]
* [[Confirmed letter of credit]]
* [[Confirming bank]]
* [[Credit]]
* [[Documentary collection]]
* [[Documentary credit]]
* [[Irrevocable letter of credit]]
* [[Issuing bank]]
* [[LOC backed]]
* [[Standby letter of credit]]
* [[Trade finance]]
* [[Uniform Customs and Practice for Documentary Credits]]


==Other resource==
*[https://www.iec.ch/what-we-do The International Electrotechnical Commission - about us]


===Other links===
[[Category:Accounting,_tax_and_regulation]]
[http://www.treasurers.org/node/5279 Letters of credit and supply chain finance, Will Spinney, ACT 2009]
[[Category:Technology]]
[[Category:The_business_context]]


[[Category:Manage_risks]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Risk_frameworks]]
[[Category:Technology]]
[[Category:Trade_finance]]
[[Category:The_business_context]]

Revision as of 05:55, 8 October 2024

Treasury - information technology - artificial intelligence - standards.

(IEC).

The International Electrotechnical Commission is established to support high quality infrastructure and international trade in electrical and electronic goods.

It develops and publishes IEC International Standards that provide instructions, guidelines, rules or definitions that are then used to design, manufacture, install, test & certify, maintain and repair electrical and electronic devices and systems.

(Source - IEC.)


See also


Other resource

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