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December 26, 2006

UCP 600 In House Training Courses

UCP 600 Training Courses
www.graincon.com
Trade Finance operations are the central pillar of every commercial bank. The success or failure of the Trade Finance department hinges on numerous factors the most important of which is the level of technical knowledge practitioners possess.

Generic training for Trade Finance practitioners has proven to be ineffective, furthermore, unless the UCP 600 training covers the practical aspects of letters of credit operations strictly from a banking perspective, it may lead practitioners to indulge themselves in researching and studying aspects of the UCP 600 that are totally unrelated to their operations and thus overlooking those essential skills they require to conduct faultless operations. Our program is focused on the most relevant issues; we have a continuous and unbiased interaction with the market place.

Every bank enjoys a host of unique facets that demand exact, rigorous and thorough attention. The relationship between all such facets is that of interdependence.  An astute professional would detect the significance of such correlation. This is exactly why our in house training programs are specifically tailored to perfectly suit the differing requirements and needs of various banks.

Our training will make a measurable difference for those practitioners who attend and their banks as well. We will set new and higher standards for the benefit of all.

In manifesting our dedication and commitment to provide you with services of the highest value, we will issue our MONEY BACK GUARANTEE and execute it if you are not reasonably satisfied with the benefits gained from our training.

General Description

The Course duration is two days (12 hours) and it covers the following:

o                The LCs Trade Cycle
o                New banking practices under the UCP 600
o                Differentiating between the UCP 600 and the UCP 500
o                LCs Operations and the Application of the UCP 600

The final session of the course will include an assessment for the participants to evaluate the post training needs from a practical point of view.

Post Training Follow Up

To ensure that practitioners are proficient in applying the UCP 600 provisions to letters of credit operations, participants are entitled to free consultation in the aftermath of the course. All technical questions on the topics covered by the course can be addressed to the trainer or any of JSCS trade finance experts.

Pricing

This in house course is offered at a preferential price of USD 4,200 per course. The price includes training fees for a maximum number of 15 practitioners and is inclusive of trainer's accommodation and travel expenses.


Please feel free to call us for further details that you  require clarified on the course or any of our services.

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December 19, 2006

Disagreement over workforce reorganisation at newly merged BSCH bank

Spanish trade unions have rejected a set of guarantees on employment proposed by the management of the newly-created Banco Santander Central Hispano (BSCH) at the start of 1999. There is now little chance of reaching an agreement on employment levels before the March 1999 merger of Banco Santander and Banco Central Hispano.

The imminent merger of Banco Santander and Banco Central Hispano was announced at the beginning of 1999. The new Banco Santander Central Hispano BSCH) will soon be 19th in the ranking of major banks in Europe, with assets of EUR 211,206 million. It will also be the largest bank in Spain, far above BBV, which was previously the largest with assets of EUR 118,444 million.

The merger received great publicity because of the size of the new bank and because of the discretion and speed with which it was agreed. The new BSCH has received a warm welcome from institutions and economic agencies that are predicting a new wave of partnerships and mergers in Spanish (and European) banking to deal with the new scenario presented by the euro single currency.

The initial reactions of the trade unions with representation in the Banco Santander and Banco Central Hispano were also positive. Furthermore, concern about redundancies seemed to have been allayed. The management of the new organisation made an explicit commitment shortly after announcing the merger that any staffing adjustments would be non-traumatic, thereby showing its willingness to agree a set of guarantees on employment with the unions before the merger was due to be put to the general meetings of the two banks in late March 1999.

However, the prospects of an agreement now seem far more remote. On 15 February, after several bargaining sessions, the management of the new bank made a proposal that the unions considered unacceptable. The main point of disagreement is that the proposed guarantees on employment cover only workers who belong strictly to Banco Santander and Banco Central Hispano. However, both are banking groups that have other organisations and commercial names, such as Banesto, which is linked to Banco Santander. The unions state that the exclusion of these workers is not negotiable. They also claim that the conditions offered to the rest of the workforce are excessively ambiguous, and that they fail to offer firm guarantees that there will be no redundancies and that any offer of early retirement or similar measures will be previously agreed with the unions. These are two points that the trade unions consider to be essential. All the unions with representation in the new bank (CC.OO, UGT, AMI; CGT, ELA, LAB and CIG) have issued an official statement expressing their rejection of the proposal from BSCH.

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December 18, 2006

Heartbreak for Barcelona as Inter snatch World Club crown

Dico www.graincon.com

Brazil's Internacional found a late winner to upset European champions Barcelona 1-0 in the Club World Cup final.

Substitute Adriano was the hero Sunday as he beat the Spanish defence on 82 minutes, dashing the hot favourites' hopes of first world club crown.

Ronaldinho came within inches of equalising with a free kick but Inter held on to maintain South American dominance of the competition, won last year by Sao Paulo.

Barcelona had looked odds-on to claim the title after their 4-0 mauling of Club America in the semi-finals, and dominated the first half without finding a way through.

In a cagey opening, Inter's 17-year-old Alexandre Pato had an early chance when he headed a corner over on nine minutes, and could have done better from a Fernandao knock-down shortly afterwards.

Gudjohnsen was just second-best to a cross from Gianluca Zambrotta as Barcelona turned up the heat, Ronaldinho coming close when a rebounded shot from the lively Giovanni van Bronckhorst landed in his path.

Former Chelsea striker Gudjohnsen came closer on 23 minutes, heading a Ludovic Giuly cross just wide, and again when he swept a scrambled clearance over the bar.

Ronaldinho attempted a repeat of his cheeky Champions League free-kick against Werder Bremen, hitting it under the wall as the defenders jumped, but the ball went straight to Inter's veteran 'keeper Clemer.

The Brazilian star, tipped for a record third consecutive World Player of the Year award on Monday, dragged an angled shot just left of the goal on 34 minutes.

Inter's forwards were getting little past the Barca back four and defender Indio had one of the Brazilians' best first-half chances, shooting over from close range.

The highly-rated Pato, who scored in the first two games for Inter, failed to make it three in a row and was withdrawn after 61 minutes in favour of room-mate Luiz Adriano, 19, who nodded the winner against Al Ahly.

As Inter showed more adventure, Barcelona's patience was wearing thin and Deco abandoned the patient build-up play to try a hopeful effort from long range.

But substitute Xavi was looking dangerous, volleying at Clemer after almost picking out Gudjohnsen twice.

However it was an Inter sub that made the difference when Adriano, on for injured captain Fernandao, was picked out on the break by Iarly and flicked past Barca 'keeper Victor Valdes.

Ronaldinho had been kept quiet with some tight marking but came within inches of a late equaliser with his free-kick with just four minutes left.

Inter qualified for the tournament when they won their first Copa Libertadores title in August, beating Sao Paulo 4-3 in the two-legged final.

Sao Paulo won the inaugural Club World Cup last year with a 1-0 victory over Liverpool in the final.

Inter became the sixth Brazilian intercontinental champions, including the former Europe-South America clash played since 1960.

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December 13, 2006

Merry Christmas Every One

Merry Christmas

Dear Friend,

The JSCS team wish you a Merry Christmas and a joyful season. May our Lord Jesus Christ bless you and may he grant you happiness, success and prosperity.

 

with our warmest regards,

J. Sifri Consulting Services

The Banking Consultants and Educators

www.graincon.com 

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Rooney nearly re-injures foot at NBA game

Rooney

www.graincon.com

Wayne Rooney and girlfriend meet the Boston Celtics' Paul Pierce up close and personal. 

The Manchester United striker and fiancee Coleen McLoughlin sat courtside Monday night when 2.03-meter (6-foot-8) Paul Pierce of the Boston Celtics lunged for a loose ball and landed on Rooney's surgically repaired right foot.

MANCHESTER, England (AP) - Wayne Rooney nearly got injured in a different venue - while watching the New York Knicks basketball team at Madison Square Garden.
"It was scary," Rooney said on Man U's Web site. "He rolled right over my foot."
Luckily, there was no damage to the foot that kept Rooney out of England's opening match in the World Cup last summer. The Celtics beat the Knicks 97-90.

United players were given three days off after the Manchester derby before returning Wednesday to prepare for Sunday's trip to West Ham United.

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December 08, 2006

The Shroud of Turin - Killing the Da Vinci Code

The Shroud of Jesus Christ, Our Lord

The Shroud of Turin is a centuries old linen cloth that bears the image of a crucified man. A man that hundreds of millions believe to be the Jesus of Nazareth. Is it really the cloth that wrapped his crucified body, or is it simply a medieval forgery, a hoax perpetrated by some clever artist? Modern science has completed hundreds of thousands of hours of detailed study and intense research on the Shroud. It is, in fact, the single most studied artifact in human history, and we know more about it today than we ever have before. And yet, the controversy still rages. This web site will keep you abreast of current research, provide you with accurate data from the previous research and let you interact with the researchers themselves. We believe that if you have access to the facts, you can make up your own mind about the Shroud. Make sure you visit the website of the shroud by following this link to Examine the Shroud of Turin for yourself. We hope you enjoy your visit.

This undisputed scientific evidence of the crucifixion affirms beyond doubt that stories such as the Da Vinci Code are nothing but destructive fiction. Science proves our faith.  

To read about the Shroud in Arabic, please follow the link: The Shroud of Turin in Arabic.

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December 07, 2006

Consumer Finance

Consumer Finance Executive  www.graincon.com

Consumer Finance

By Yacoub E. Sifri

Only if extended within accurately placed parameters, do the personal loans generate vast profits. On the other hand, the delinquency ratio may accelerate in a fearful velocity causing sever losses if personal loans are extended haphazardly.

The
INDICATIVE CREDIT SCORING SHEET is one component of a whole integrated system of operations; for it to be effective it must be put together in accord with the other components as highlighted hereunder.  

The requisites of establishing a profitable and active personal credit portfolio are:-

A. INFRASTRUCTURE

The complexity of the personal lending operations and the necessity to maintain competitive standards of service warrant the establishment of an independent CONSUMER FINANCE DEPARTMENT that comprises of two sections; processing and collections. This is particularly true when the number of loans granted increases.
Specialized staff will then be needed to check the applications' documentation and process it accurately. The collection section (or Delinquency Control Unit) will be responsible for follow up and collection of delinquent  loans.

B. PRODUCT PLACEMENT AND DELIVERY     

There are many types of personal loans. Each type has its own unique features. To accommodate the differing needs of the personal borrowers, it would be savvy to avail all types of loans to the public. For ease of presentation, I have classified the different types of loans under two main categories; Classics and Non – Classics (with Indicative Credit Scoring Sheet).

Classics:-

These are the loans traditionally granted by banks to their customers against adequate securities and in
accordance with the bank's personal credit policy. The security may be a lien over deposit, a mortgage over
property or an acceptable guarantor. Such loans are typically, though not necessarily so, named as sundry loans.
The most common types of sundry loans are Fixed Term Loans, Irregular Installment Loans, Installment Loans, Straight Line Loans and Ex Hirer Loan. Overdrafts and Credit Cards are the revolving types of Classics.

In this category, it is vital to ensure that the entire loan's documentation are properly completed and presented to the bank in compliance with the bank's personal lending policy.

Non Classics (With Indicative Credit Scoring Sheet):-

This type of lending, if extended within carefully placed parameters and in accordance with an accurate credit  policy specifically prepared for each country on its own, will generate vast profits for the Bank.

This is an UNSECURED loan for salaried people repayable by fixed monthly installments over a prearranged period.

The features of the Non Classic are:
·             No security required (may be a guarantor depending on the credit  policy).
·             Borrower not necessarily an account holder.  
·             Minimum and Maximum loan amount fixed by each bank separately.
·             Repayments by equal monthly installments each not to exceed a certain percentage of borrower's
   monthly salary (depending on the laws of each country).
·             Loan period up to 36 months.
·             Interest Rate Fixed by each bank on its own.

To qualify for the Non Classic, the applicant must meet a set of conditions placed by the bank. Such conditions have a direct impact on the quality of the credit portfolio; therefore, they must be derived from A FRESH SURVEY ON PERSONAL BANKING Market. The findings of the survey will dictate the action needed to design and deliver the bank's personal services and the action needed to promote its services.

The Benefits of the Non Classics are:
·             Convenient; a. Simple application procedure. b. Fast access to cash. c. Purpose of loan need not  be stated. d. Fixed Interest rate.
·             Efficient; Funds must be available within 24 hours, if application meets with all the requirements, if not on the same day.
·             Flexible; Flexible repayment schedule to suit borrowers' repayment ability up to a maximum of 36 months.

CAUTIONARY NOTE:   

This is a very profitable product; it is also a very risky one. Numerous banks have suffered severe losses
because they were unable to extend it within a whole integrated system of operations; a system that is based on a carefully structured market related parameters.

International banks have developed the Credit Scoring Sheet specifically for the Non Classic type of personal loans to assist them in making a fast and sound credit decision. The Credit Scoring Sheet is not effective for any other type of loans. In fact it is irrational to use it for the Classics as these are granted against adequate securities.    

THE INDICATIVE CREDIT SCORING SHEET

This is a highly sophisticated statistical tool developed specifically for the Non Classic Loan for the purpose of weighing the credit risk of the applicant and thus determining whether he/she qualifies for a loan or not. It meant to replace the ordinary loan application evaluation process to expedite the loan approval.    

It comprises of three sections; Personal, Professional and Financial Performance. Each section contains
numerous sub items detailing full information such as the applicant's age, monthly income, past performance, profession. Depending on the answer, the applicant receives preset grades WEIGHING THE CREDIT RISK of the borrower. Only if the applicant reaches the minimum score does he get an approval.

This is not a fixed statistical tool that can be used in all countries, in fact for it to be effective; it must be set to suit  the working environment of each market on its own and must be based on the personal banking survey
mentioned above.    

Again, it is totally irrational to use this tool for the Classic Loans.

DOCUMENTATION

The Loan Application form, together with the full set of documents as required by the credit policy, must be
presented upon application. It is also important to ensure the bank's forms and applications are not stale.   In fact  we have a whole department responsible for designing modern forms for all departments of the bank including account opening forms, applications, remittances, loans, General Securities Agreement, General Agreement for Goods…etc and we would be pleased to review your current forms if you feel that there is a need to do so.

THE PERSONAL CREDIT POLICY MANUAL (PCPM)

A manual that is absolutely vital for the construction of a personal lending environment conducive to achieving negligible OD Ratio (Minimal Delinquency Rates), optimum efficiency, strict operational controls and exemplary customer service.

The PCPM contains the bank's policies, procedures, lending guidelines, limits of authority, relative circulars and notes for general circulation.

The aims of the PCPM are:-

1. To control the bank's personal lending. Also to set down appropriate policy guidelines and procedures of the management, specifically:-

- Credit Assessment.
- Credit Presentation & Approval Process.
- Credit Monitoring & Control.                   
- Loss Prevention and Recovery Procedures.                                                             

2. To support the credit training needs of Managers and Staff.   

3. To provide a ready source of reference.

DELINQUENCY CONTROL MANUAL

A vital manual containing the bank's strategy and procedures for handling delinquent accounts. It contains:-
1. Collection Strategy.
2. Delinquency Control Unit Function (The Collection Section stated in A above).
3. Recovery Strategy; Provisioning Policy and Branch Co ordination / Responsibility. 4. Daily Work Flow and
Collectors Job Descriptions.
5. Legal Actions.
6. Abandonment and Termination of Collection Efforts.
7. Blacklisting.
8. Write Offs.

CREDIT CARD ISSUING POLICY MANUAL      

Being an integral part of the personal lending environment, the credit cards operations should be highlighted. In this profit generating center, here again the risk is high in the absence of the Credit Card Issuing Policy Manual.

The primary objective of such Policy Manual is to acquire and develop a portfolio of qualified cardholders through controlled and timely analysis of applicant's credit worthiness. And provide prudent and consistent guidelines for the effective management of Card Business.

In general, the policy sets down appropriate guidelines and procedures for the management and controls for the issuance of Cards, specifically for; 1. Credit Assessment, and 2. Credit Presentation and Approval Process.

It is only through the careful and accurate setting of each of the above elements, a bank can engineer an effective ongoing SYSTEM of OPERATIONS. Such system will guarantee the development of a handsomely profitable credit portfolio. There is no room for mistakes here, this system must be perfected and its operations must be mastered in order to eradicate danger. One erroneous parameter is adequate to lead to tragic consequences.
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December 05, 2006

Robert Gates

Mr. Robert Gate www.graincon.com

President Bush nominated Robert M. Gates to replace Donald Rumsfeld as secretary of defense.

 Career: Gates joined the CIA in 1966 and by 1991, was head of the agency. He spent nearly 27 years as an intelligence professional, serving six presidents. He is the only career officer in CIA's history to rise from entry-level employee to director. In 1974, Gates was assigned to the National Security Council. In 1979, he returned to the CIA. Gates served as director of central intelligence from 1991 until 1993, under George H.W. Bush.

Education: Bachelor's degree from the College of William and Mary; master's degree in history from Indiana University; doctorate in Russian and Soviet history from Georgetown University.

Born: September 25, 1943 in Kansas

Family: Married to Becky. They have two children

Sources: CIA Web site, AP, Texas A&M University Web site.

 

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Christianity the world's favourite religion

  www.graincon.com

Christianity is the world's biggest religion, with about 2.5 billion followers worldwide. It is also the fastest growing religion. It is based on the teachings of Jesus Christ who lived in the Holy Land of Palestine 2,000 years ago. Jesus is the most powerful character ever known in the march of humanity. He is the head of the church and the leader of Christians all over the world.

Christian history - the basics

This history of Christianity is focussed on the life, death and resurrection of one person, Jesus Christ, the son of God.

Background to the life and death of Jesus Christ

The traditional story of Jesus tells of his birth in a stable in Bethlehem in the Holy Land, to a young virgin called Mary who had become pregnant with the son of God through the action of the Holy Spirit.

The story of Jesus' birth is told in the writings of Matthew and Luke in the New Testament of the Bible.

His birth is believed by Christians to be the fulfilment of prophecies in the Jewish Old Testament which claimed that a Messiah would deliver the Jewish people from captivity.

Jesus' ministry

After the story of his birth, little is known about Jesus until he began his ministry at the age of about 30.

He then spent three years teaching, healing and working miracles.

He taught in parables - everyday stories which had divine messages for those who would hear it.

He had twelve disciples whom he called to follow him and help him in his work.

Persecution and death

Jesus stated publicly that he spoke with the authority of God.

This claim angered the religious authorities in Palestine and they handed Jesus over to the Roman authorities as a revolutionary.

He was tried for heresy, condemned and put to death by means of crucifixion.

Resurrection

On the Sunday following his execution, some of his women followers discovered that the tomb into which his body had been placed was empty.

Jesus then appeared to them, alive, as the Jesus they had known prior to his death. His followers realised that God had raised Jesus from the dead.

Jesus was seen by many of his disciples and followers over the next few days before, according to the Gospel accounts, he was taken up into heaven.

 

Saint Paul and the early Church

It has been suggested that the work of Jesus Christ and the impact of his death and resurrection would not have made any lasting impact on the world were it not for the missionary work of Paul.

The account of Paul's conversion to Christianity is contained in the New Testament book, the Acts of the Apostles.

Before his conversion Paul had been known as Saul and had been violently opposed to the Christian faith as taught by Jesus and after his death, by his disciples.

Saul experienced a dramatic conversion, known as the Damascus Road conversion, when he was temporarily blinded.

He found himself filled with the Holy Spirit and immediately began preaching the Christian gospel.

Paul's concept of Christianity

Paul's teaching centred on understanding the death and resurrection of Jesus Christ as a central turning point in history.

He understood the resurrection to signal the end of the need to live under Jewish law.

Instead Paul taught of living in the Spirit in which the power of God was made to work through human flesh.

Some of his letters to fledgling churches throughout the Roman Empire are contained in the New Testament and outline Paul's theology.

He insisted that Gentiles had as much access to the faith as Jews and that freedom from the Law set everyone free.

It was this teaching which was essential for the development and success of the early church which would otherwise have remained nothing more than another Jewish sect.

 

Constantine and the Holy Roman Empire

Paul established Christian churches throughout the Roman Empire, including Europe, and beyond - even into Africa.

Persecution

However, in all cases, the church remained small and was persecuted, particularly under tyrannical Roman emperors like Nero (54-68), Domitian (81-96), under whom being a Christian was an illegal act, and Diocletian (284-305).

Many Christian believers died for their faith and became martyrs for the church (Bishop Polycarp and St Alban amongst others).

Constantine turns the tide

When a Roman soldier, Constantine, won victory over his rival in battle to become the Roman emperor, he attributed his success to the Christian God and immediately proclaimed his conversion to Christianity.

Christianity became the official religion of the Roman Empire.

Constantine then needed to establish exactly what the Christian faith was and called the First Council of Nicea in 325 AD which formulated and codified the faith.

Formulating the faith

Over the next few centuries, there were debates and controversies about the precise interpretation of the faith, as ideas were formulated and discussed.

The Council of Chalcedon held in 451 was the last council held whilst the Roman Empire was intact. It gave rise to the Nicene Creed which Christians still say today to affirm their belief in God, Christ and his church.

When Rome fell in 476, it meant that Western and Eastern Christians were no longer under the same political rule and differences in belief and practice arose between them.

The Great Schism

The differences between Eastern and Western Christianity culminated in what has been called the Great Schism, in 1054, when the patriarchs of the Eastern and Western division (of Constantinople and Rome respectively) were unable to resolve their differences.

The split led to the Orthodox church and the Roman Catholic church.

The Orthodox church does not recognise the authority of the Roman papacy and claims a Christian heritage in direct descent from the Christian church of Christ's believers.

 

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December 03, 2006

The Lebanese People Overthrowing the Government

A victoy in Lebanon
More than a Million protesters from all over Lebanon massed in downtown Beirut yesterday seeking to force the resignation of Western-backed Prime Minister Fuad Saniora in a peaceful march. Today Sulieman Franjieh and Talal Arsalan confirmed that united as they are, the Lebanese people will over through the current illegitimate government of Lebanon whilst totally ignoring the Egyptian's President and the Saudi's ill support of the falling government of Lebanon. 

 

The protest, which police estimated at over a million, created a sea of Lebanese flags that blanketed downtown Beirut and spilled onto the surrounding streets. Hezbollah put the number at one million two hundred thousands - a quarter of Lebanon’s population.

“Saniora out. We want a free government,” protesters shouted. “We want a clean government,” read one placard, in what has become the opposition motto.


Launching a long-threatened campaign to force Lebanon’s US-backed government from office, Hezbollah and its allies said the demonstration would be followed by a wave of open-ended protests.

Hezbollah had threatened demonstrations unless it and its allies obtained a veto share of the cabinet — a demand Mr Saniora and Lebanon’s anti-Syrian parties rejected. The protests aim to generate enough popular pressure to force the government out.

Armed soldiers and police closed all downtown roads, unfurling barbed wire and placing barricades.

The security came amid fears they may turn into clashes between anti- and pro-Syrian factions or Hezbollah supporters could try to storm government headquarters.

Hezbollah’s security men formed two lines between protesters and the security forces to prevent clashes.

“I wish the prime minister and his ministers were among us today, not hiding behind barbed wire. He who has his people behind him does not need barbed wire,” Christian leader and Hezbollah ally Michel Aoun told the crowd.

A day earlier, Mr Saniora vowed his government would not fall but warned: “Lebanon’s independence is threatened and its democratic system is in danger.”

A demonstration last week for a slain anti-Syrian politician also drew hundreds of thousands downtown, filling Martyr’s Square. But yesterday’s appeared larger.

Supporters planned to set up camp around the clock in tents erected on a road outside Mr Saniora’s office and in a downtown square.

Hezbollah has tried to depict the protest as rallying all Lebanese. It urged demonstrators to wave only the Lebanese flag, in contrast to past protests that featured the group’s yellow flag with a fist and a Kalashnikov rifle.
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December 02, 2006

Auf Wiedersehen to export credits

books

 

 

www.graincon.com

 

 

 

Out with the old in with the new. The export credit market's decline in Germany has become almost terminal. It has been a busy year for KfW IPEX Bank. The team has been swept off its feet trying to close deals and meet demand for financing, but the increase in financing has been wholly different this time around. KfW has closed only one export credit agency financing deal in more than a year. It has had to come to terms with the big decline in a product in which it had led the German market.

An analysis shows that this is not just particular to KfW. German banks have largely moved out of the export credit market. They have been driven away by a combination of low margins and aggressive international competition. 

"Most German banks can simply not refinance large volume loans at these low margins; you simply lose money," says a German banker.

Euler Hermes supports this opinion. It has experienced a big decline in the number of German banks applying for transaction cover.

"Overall, we have seen fewer German banks being involved in ECA deals," says Jens Schnoor, head of the aircraft finance unit at Euler Hermes.

German banks have come along way since spearheading the export credit market. They were the first to conclude deals as lead managers for German, French and British portions of export credit transactions.

The turning point came in summer 2005 when Airbus exerted pressure on ECAs to introduce 100% guarantee systems.

"Together with this came a substantial reduction in the financing margins of ECA transactions," says a leading German banker.

Under the old system, French banks received 75 basis points (bp) on transactions; British banks received 57.5bp and German banks received between 25 and 35bp.

"Fewer German banks became interested in transactions after the introduction of 100% guarantees," says Schnoor.

Christian Bevc, vice-president at KfW IPEX Bank, says the change in the guarantee system definitely triggered its slow withdrawal from the market.

ECA financing margins range between libor minus five and libor plus 5bp.

"Export credit financing is a basic product. Like a commodity... it's very cheap and the only reason we keep doing deals is to keep a presence in this market," says a leading French bank.

Banks agree that ECA financing is unattractive as a single financing product.

The trend has been for banks to provide a combination of different structures to accompany ECA deals.

"We are only interested in ECA deals when they are combined with tax leases, securitizations, CP conduits, JOLs or some other high-margin structure," says a leading banker.

The German government is not concerned about the nationality of the financiers. The main focus is on ensuring that German exports are supported.

Although there has been a large-scale exit from the market, some banks still want to pursue innovative ways of ensuring that they can profit from a product that still constitutes more than one-third of the market.

HSH NordBank is developing an innovative financing structure that will leverage ECA deals for higher margins. This is likely to be a special purpose vehicle that will allow it flexibility to pursue transactions on an off-balance-sheet basis.

"We know what we need to do. However, this is not something we can deliver tomorrow, but maybe next year," says Angela Behrend-Goernemann, deputy global head of transport finance at HSH Nordbank.

While German banks may not return to the market in large numbers, some at least could spearhead new ideas and new structures.

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December 01, 2006

Middle East Trade and Finance Forum - Press Release

The Globe www.graincon.com

Please click on this link to read the Press release on our forthcoming participation at the ME Trade and Export Forum in Dubai.

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Securities

Internet  www.graincon.com

Custody/Sub - Custody Business

The custody business is one of the most lucrative divisions in investment banking. It is estimated that custody annually generates some 12.5 Billion in fee income noting that fees only constitute about 40% of the overall income of a custodian... this is a high profile business worth considering especially now that global fund managers such as State Street Bank, Bank of New York, Barclays..etc are investing in the emerging markets of the Middle East.

Getting into custody is not easy; it requires investments in systems and development of a specialised cadre capable of meeting the different needs and changing  demands of fund managers and investors (customers).

What is a custodian? A custodian is a keeper and a care taker. In our profession, it is the bank that performs a multitude of functions in order to assist the fund manager (the investment decision maker), in executing its SECURITIES sales and purchase orders (settlements), safekeeping such securities, collecting its revenues, reporting corporate actions...and other services that will be addressed later.

The essence of this definition is that the global custodian carries out the duties of a master record-keeper rather than just being the actual caretaker, of the securities.

For a pre agreed  charge, the global custodian agrees to handle all operational concerns that occurs after the investment decision is made i.e. dealing with "post - trade" aspects of the investment, thus allowing the investment manager to get on with the job of managing the fund.  

For the charge received, the global custodian typically provides the following package of services to the fund manager.

  1. Safekeeping
  2. Settlement
  3. Custodian Services
  4. Corporate Action Processing
  5. Income Collection
  6. Multi-Currency Accounting
  7. Stock Lending
  8. Tax Reporting and Reclamation
  9. Cash Management
  10. Portfolio Reporting and Valuation
  11. Proxy Voting
  12. Foreign Exchange

Establishing a strong custody services can mean the difference between forging ahead and falling behind; the difference between remaining local or regional and emerging global.

With
JSCS securities experts, you can rest assured you made the right choice in contracting us to establish or review your securities operations. We're proud of our profound knowledge in this domain because it is a direct reflection of our dedication and commitment to custody services in particular and banking operations in general. Our custodial services include putting in place a system of operations for settlement, securities registration, safekeeping, income processing, corporate actions, proxy voting, cash management, and real time trade and portfolio reporting.

More specifically, we can assist in establishing a Securities Department with sophisticated automation, soundly placed procedures and well trained staff to achieve the following accountabilities:-

Efficient settlement

To guarantee accurate and timely movement of securities and funds associated with trading it.
Serving investment managers at the highest standards can be achieved with a feasible securities system provided staff receive  a specialised training.  

Securities safekeeping

To provide a secure facility for the safekeeping of your clients' stocks, bonds, notes and other securities — in both physical and book-based environments. Furthermore, to ensure that clients' assets are held securely and recorded accurately on your custody system.

Income processing

To process the income generated by the investments of your clients. You will be able to efficiently collect interest and dividends on securities in custody, and offer contractual income processing on securities. An Income Entitlement Help Desk will be staffed by knowledgeable professionals, supporting all your  clients' income inquiry needs.

Corporate actions

To keep your clients up to date on corporate action activity affecting their securities held in your custody. They must receive timely corporate action notices about rights, warrants, conversions, name changes, stock splits, and other corporate action types. You notification procedures will focus on control and optimum information turnaround so that your clients  have the maximum time possible to submit an informed response. You must  promptly act on your clients instructions with respect to voluntary corporate actions.

Proxy voting

To notify your clients  on upcoming meetings for which they may cast their vote via SWIFT, fax, telephone, mail or the Internet. To also provide front line service support through a Corporate Actions Help Desk, to be staffed by a team of dedicated specialists.

The combination of our team of knowledgeable professionals and an adequate technology we can come into a relationship that will most assuredly help you to establish and build up your custody business.

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