Countercyclical and Standby letter of credit: Difference between pages

Revision as of 18:48, 11 November 2016

(SLOC).

A type of letter of credit:

Issued to ensure the financial performance of a bank’s customer to a third party beneficiary; and
Drawn upon only in the event of non-performance.

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-An economic or financial policy that works against the cyclical tendencies in the economy.
+(SLOC).
-Countercyclical policies cool down the economy when it is in an upswing, and stimulate the economy when it is in a downturn.
+A type of letter of credit:
+*Issued to ensure the financial performance of a bank’s customer to a third party beneficiary; and
+*Drawn upon only in the event of non-performance.
-Opposite to Procyclical.
+== See also ==
+* [[Advance payment guarantee]]
+* [[Contingent liabilities]]
+* [[Letter of credit]]
+* [[Off balance sheet risk]]
-== See also ==
+[[Category:Long_term_funding]]
-* [[Procyclical]]
+[[Category:Manage_risks]]
-* [[Total Loss Absorbing Capacity]]
+[[Category:Risk_frameworks]]
+[[Category:Trade_finance]]