World practice shows that the inclusion of bills is a transfer of the holders of these same bills to banks up to the date due.Then comes the payment of principal amount provided for, except, of course, a certain percentage, which was prescribed in the contract.This percentage is called, respectively, the discount rate.
Feasibility and methods of occurrence bills
Before analyzing the possible relationships that can be formed between the client, bearer securities, and the bank is to understand the economic impact, which carries a discount of bills in the bank.First of all in this situation is to evaluate the initial stage of the formation of the actual bill.Accepted provide two options that allow the emergence of so-called commercial circulation of bills.The first option - a classic.In this situation, the buyer of certain goods or services gives the seller a bill which guarantees the fulfillment of contractual payments in the future, or, on the contrary, exposes the seller to the buyer of goods or services the bill, but the transfer.The second option - when just a promissory note is a payment provided by the seller of the goods.Sometimes this system is called the settlement or "World".Basically, they are both one, in principle, the second option is that the buyer has the opportunity to receive the goods without having required at a given time funds, and the seller is willing to receive these funds in the future.
Commercial loans through bills
As can be seen, the scheme involved only two subjects - the seller and, accordingly, the buyer, so why even need an account with the bank notes?Basically bill discounting may not be necessary if these bills themselves are used in the future as a means of calculating, or used in some netting chains when they are not exchanged for cash back.On the other hand, the bill is extremely proof reliability to some extent in the buyer's payment, which, as is known, can not always be true, for objective and subjective reasons.In all of this the development of the bill itself as some form of credit facilitates inherently burden on the banking sector, as eliminating the need to appeal to the bank for a loan, in fact, becomes the lender seller.By keeping or rediscount, the bank receives as a bonus a certain percentage.One of the few, but significant enough, the lack of such a system for banks is the presence of a fixed percentage at closing registration or rediscount, which is not very comfortable with taking into account possible changes in the market conjectures.
Risks
Naturally, as in other areas of the credit relationship, taking into account bills and carries a certain amount of risk.First of all, we are talking about the possibility of non-payment of loan obligations, which to some extent can be offset by regressive requirements endorsers (the latter is more, the risk, of course, becomes smaller).It is not excluded, and the risk concentration.Next up is the so-called security risk.The fact that the inclusion of bills is not accompanied, as a rule, by whatever means, to ensure fulfillment of the obligations of the current, which, of course, greatly increases the risk in comparison with other ways of lending.So in conclusion, definitions, we can say the specific risks for the commercial bill of credit is the possibility of registration of securities that do not have a power bill, or, more generally, counterfeit.
