Transferable Credit is a documentary credit under which the bank called upon to effect payment or acceptance, or to any bank entitled to effect negotiation, makes the credit available in whole or in part to one or more third parties (second beneficiaries).
More from this Section
- Mixed Banking
The banking system that combines deposit banking with investment banking is known as Mixed banking.
- Bid or Tender Bond
Bid or Tender Bond is a bond which provides an assurance of the intention of the party submitting a tender (i.e. the principal) to sign a contract if his tender is accepted
- Spot Market Time Zones
Although foreign exchange trading is conducted only during normal business hours in a given location, these hours vary among locations due to different time zones.
- Currency Call Options
A Currency call options grants the right to buy a specific currency at a designated price within a specific period of time. The price at which the owner is allowed to buy that currency is known as the exercise price or strike price, and there are monthly expiration dates for each option.
In case of hypothecation, possession of goods is not given to the bank. The goods remain at the disposal and in the god owns of...
- Investment Banking
A specific division of banking related to the finance of capital for other companies, governments and other entities is known as investment banking.
- Holding company
Holding company is a company which controls another company, usually by owing more than half of its shares.