Intermediary Services
1、Can you list some functions of commercial banks？
The 3 main functions of commercial banks:
the creation of money accomplished through lending and investing activities
the holding of deposits
the provision of a mechanism for payments and transfers of funds
They all relate to the bank’s critical role in the overall management of the flow of money and credit through the economy.
2、Why do we need negotiable instruments when making payments?
Paying large sums of money in cash is inconvenient and risky.
Negotiable Instruments such as Bills of Exchange, Cheques and Promissory Notes are wildly used as instruments in the international settlement. They represent a right to payment. A right is a promise and not a tangible piece of property.
汇票和支票的区别
1、Bills of exchange：require the drawee to pay on demand
Cheques：require the bank to pay on demand
2、a cheque is never accepted by the bank on which it is drawn
3、few cheques are ever negotiated
4、In certain circumstances,an order cheque bearing a forged or an/un authorized endorsemend is
discharged by the bank on which it is drawn
5、The rules relating to crossings are confined to cheques
区别：cheques：not the same person
支票、银行汇票
Bank drafts:The drawer and drawee are the same person
区别：bills of exchange:is in the form of an order
汇票和本票
Promissory notes：1、is a promises to pay
2、The drawer and drawee are the same person
3、is never accepted
4、The maker of promissory note is always the party primarily liable for
payment
5、They are issued for certain fixed amounts,always payable to the better and on
demond
资本租赁
Capital lease：noncancelable
The parchase of an asset and incurrence of a liability
经营租赁
Operating lease:cancelable lleases is a lease written for a short period than the economic life of the
leased asset
杠杆租赁
Leverage lease: is a three-party lease involving a lessee ,a lessor,and a long-term creditor
The long-term creditor provides nonrecourse financing to the lessor
Factor:is a short-term financing from the nonrecourse sale of accounts receivable to a third
party,known as a factor
Discount factoring: in which the factor pays a discounted price for the receivables prior to
the maturity date
Maturity factoring where factor pays the client the purchase price of the factored accounts
at maturity
Factoring:is normally done without recourse
Accounts receivable financing : carried out on a recourse basis
is a form of collateralited lending in which accounts receivables are
the collateral抵押
International settement（国际结算）
1、remittance(汇款)
2、collection(托收)
3、documentary credit（跟单信用证）
（一）Remittance
1.nostro accounts(往账)：is our bank's account in the book of an overseas bank.
2.vostro accounts(来账)：is an overseas bank's account in our bank.
Trust Services
1、There are 3 parties involving in the operation of Trust Service:
the trustor, or party creates the trust, is also know as the settlor, grantor, or donor.
the beneficiary, an individual or charitable organization, for whose benefit the fund is established.
A beneficiary may have an interest in the trust income, corpus or both; and a present interest, commencing with the trust creation, or a future interest, commencing when a specified event occurs, or both
the trustee, who is charged with the management and preservation of the property constituting the trust estate.
2、What is a factoring in substance?
Factoring is short-term financing from the nonrecourse sale of accounts receivable to a third party, know as the factor, usually a bank-holding company or the bank itself.
Factoring is normally done without recourse, meaning that the factor does the credit evaluation before credit is extended and assumes the risk of nonpayment.
