Country risk and Deduct from beneficiary: Difference between pages

Revision as of 15:29, 5 August 2013

Banking.

The process of deducting bank fees directly from the payment account.

Common in some countries where a correspondent bank is used to effect a cross-border payment.

@@ Line 1: / Line 1: @@
-''Risk management''
+''Banking.''
-The risk that a country or an entity within a country will not be able to honour its financial obligations.
+The process of deducting bank fees directly from the payment account.
-Exposures can arise from - for example:
-*Interruption of business at the country level (political sovereign risk)
-*Currencies being blocked from cross-border repatriation (transfer risk) and
-*Central bank liquidity shortages preventing conversion (convertibility risk).
+Common in some countries where a correspondent bank is used to effect a cross-border payment.
 == See also ==
-* [[Exposure]]
+* [[Correspondent banking]]
-* [[Political risk]]