Financing Guarantees For Cross-border Banking Transactions

Abstract

The importance of financing guarantees for cross-border banking transactions appears because of their effective role in facilitating international commercial transactions and as a means of protecting economic dealers, especially in the field of international trade. The process of granting and verifying guarantees within the framework of banking transactions helps reduce credit risks in unsecured financial transactions. The main factor for the existence of these guarantees is to reduce the risks on the creditor. The risks decrease whenever the credit secured with assets allows the creditor to use these assets as another source to recover their money in the event of non-payment of debts.