DOCUMENTARY LETTERS OF CREDIT AND ELECTRONIC BANKING  Cover Image

DOKUMENTARNI AKREDITIV I ELEKTRONSKO BANKARSTVO
DOCUMENTARY LETTERS OF CREDIT AND ELECTRONIC BANKING

Author(s): Mukadesa Delimeđac
Subject(s): Economy
Published by: Интернационални Универзитет у Новом Пазару
Keywords: documentary letter of credit; Incoterms 2010; electronic credentials; SWIFT; Bolero systems

Summary/Abstract: One of the most reliable methods of payment in international trade is payment by documentary credit. Its main function is to ensure that payment is made by a neutral bank on the order of the buyer, so the seller has a solid bank guarantee for his obligation. Besides its payment function, the function of lending is also important, because payment is usually made on a deferred period. Important characteristics of documentary letters of credit are speed and reliability of transaction execution for all participants in the contracting business. By learning about the basic characteristics of letters of credit, readers will become familiar with the specifics of this payment method. Today's business requires a great analysis and selection of the most effective ways of doing business at the lowest cost and the increasing use of electronic business, which saves up to 40 % of the cost of carrying out certain transactions. This paper wants to point out all the benefits to business through documentary letters of credit, on the one hand, and savings caused by the use of electronic transmission of data, on the other.

  • Issue Year: 2014
  • Issue No: 05
  • Page Range: 66-78
  • Page Count: 13
  • Language: Bosnian