Investor Presentaiton

Documentary credit (DC) Assures seller of payment by a trusted intermediary, provided they deliver the right goods; used when there is low familiarity with the buyer or in an uncertain economic environment 2 = Interest and Fee income earned across life cycle 3 5 3 2 HSBC HSBC ☑ 1 1 1 Buyer $ 4 1 Buyer requests for a DC specifying terms of the purchase; is issued favouring the Seller 2 Seller ships goods and presents title documents 3 Documents checked with DC conditions; Financing extended if required 4 Upon receipt of docs, issuing bank pays or accepts to pay on the due date 5 Buyer makes payment on the due date Seller 9

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