centralization

jabra · Post by **jabra** » Sat Feb 14, 2009 12:08 pm

dear friends,

if a bank operates with a centralized trade operation and one of the branch's customer wants to open an LC, the how should the swift message be construct? in most of the cases, i see that the trade center is shown as the applicant bank while the branch is shown as the issuing bank. but i think that should be opposite. whats your opinion?

Navi · Post by **Navi** » Wed Feb 18, 2009 9:39 pm

Hi friend,
.
In my bank, only trade centers shown on the lc as issuing bank and branchs were not mentioned anywhere on the lc.

For your question, we must define "issuing bank and applicant bank" separately.

In my opinion, issuing bank should be the trade center as they issue the credit on request of the branch. Applicant bank should be the branch because they are the one applying for issuance of credit.

regards

iLC · Post by **iLC** » Thu Feb 19, 2009 9:08 am

i agree with navi. there is no need to the name of the branch since the trade center belongs to the same bank.

applicant bank is used when a bank's uses the service of another bank and want to show their name on the LC. while issuing bank is the bank which is issuing the credit. technically therefore, applicant bank has no commitment towards the beneficiary.

swift handbook define applicant bank as This field specifies the bank of the applicant customer, if different from the issuing bank.

gpsapitan · Post by **gpsapitan** » Thu Feb 19, 2009 9:51 am

No need to put the Branch Name. there is no such thing as applicant bank as long as it is in the same country. but if its in other country, The one sending the message normally is the head office then it must show the issuing bank name" example: header name is CITIBANK NY , but the ultimate issuing bank is Citibank India. Then it must be shown"

centralization

centralization

In my bank...

i agree with navi

I agree with navi and iLC