Bank guarantee and Governance: Difference between pages

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''Trade finance.''
1.  ''Organisations - internal frameworks.''


A guarantee issued by a bank, in support of a commercial transaction.
A framework that provides guidance on strategy including assessing risk, ensures effective monitoring of management and makes certain that managers are accountable to stakeholders.


The guarantee is a secondary obligation of the bank, called upon only in the event of the failure of a party to the commercial transaction.
In the commercial context, this framework is known as ''corporate governance''.


Contrasted with a letter of credit, which is a primary obligation of the bank.
 
2.  ''Markets - financial organisations.''
 
The broader set of relationships and responsibilities of an organisation, particularly of a financial organisation. 
 
Governance in this context extends to other parties including other interdependent organisations and the broader financial markets.




== See also ==
== See also ==
* [[Facility]]
* [[Accountability]]
* [[Guarantee]]
* [[Audit]]
* [[Guarantee line]]
* [[Boilerplate]]
* [[Guarantor]]
* [[Corporate governance]]
* [[Letter of credit]]
* [[Environmental & Social issues]]
* [[Sustainability linked loan]]
* [[ESG]]
* [[Trade finance]]
* [[Ethics]]
* [[Process strategy]]
* [[Whistle-blowing]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Identify_and_assess_risks]]
[[Category:Ethics]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]
[[Category:Risk_frameworks]]
[[Category:Trade_finance]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 15:27, 7 March 2022

1. Organisations - internal frameworks.

A framework that provides guidance on strategy including assessing risk, ensures effective monitoring of management and makes certain that managers are accountable to stakeholders.

In the commercial context, this framework is known as corporate governance.


2. Markets - financial organisations.

The broader set of relationships and responsibilities of an organisation, particularly of a financial organisation.

Governance in this context extends to other parties including other interdependent organisations and the broader financial markets.


See also