Espacios vol. 39 (# 06) Year 2018.

Page 31
A letter of credit as an instrument tomitigate risks and improve the efficiencyof
foreign trade transaction
Vladimir Anatolevich ERMAKOV 1; Elena Mikhailovna BURMISTROVA 2;
Nikolay Borisovich BODIN 3;Alexander Alexandrovich CHURSIN 4; Elena
Aleksandrovna SHEVEREVA 5
ABSTRACT:
The main purpose of this study is to analyze the practice of using documentary
letters of credit in foreign trade, and to determine effective ways to improve letter
of credit(L/C) payment methods for importers/exporters. Relevant empirical
research methods are applied herein, as well as indicator techniques and
secondary analysis of the results of a global survey of experts in international
trade financing. This study allows to make the following conclusions: • In
international practice, commercial L/Csare most widely used in foreign trade
transactions. •However, their volume in international payments has decreased for
the last year. Most experts believe that the main reason for such decline is a
decrease in foreign trade turnover. • Unlike countries with developed financial
markets, the share of payments using L/Cs remains rather small in Russia, and it
amounts to about 0.15% of the total volume of payment transactions in the
banking system. • At the same time, over the past 5 years there has been a
twofold increase in the volume of payments, in value terms, with the use of L/Cs.
This study allows identifying the main problems that retard improving L/C
payment methods for foreign trade transactions, namely: low availability of L/Cs
for small and medium-sized businesses; cost and complexity of compliance with
regulatory requirements, including Basel III; growing global risks. In the author's
opinion, the blockchaintechnology may become one of the promising ways for
improving L/C payment methods for international transactions. This technique
may help to solve one of the main problems in global trade — the huge
document flow while conducting transactions between several entities. The use
of this technology will save time and money for customers, and it may ultimately
transform trade finance for the benefit of businesses around the world.
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3rd World Conference on Technology, Innovation and Entrepreneurship
(WOCTINE)
The Contribution of Participation Banks to the International Trade in Turkey: A
Panel Data Analysis
Cansu Şarkaya İçellioğlua, Merve Büşra Engin Öztürkb* a,bIstanbul University-
Cerrahpaşa, Sultangazi, İstanbul 34265, Turkey
Abstract
Innovations in the financial sector contribute to development of money and
capital markets. When the financial sectorexpands, the real sector is also
affected positively. Country economies can grow faster with driving force of
financial markets. In fact, if the real sector extends abroad and foreign exchange
flows into the country, the pressure on exchange rates can be alleviated. The
emergence and development of Islamic finance can be considered as one of the
financial innovations. A large amount of Islamic funds which are under the
mattress, enter to financial markets through Islamic products and services.
Participation banks which are the representative of Islamic finance in Turkey
meet the funds needs of the real sector with the supply of funds. The aim of the
study is to investigate the effects of Islamic banks on real sector and international
trade. In this context, export was defined as a proxy of international trade and the
impact of provided funds by participation banks on export was examined by
panel data analysis. The dataset contains in 44 quarterly period over the years of
2008-2018. According to the results, the funds canalized into real sector by
participation banks increase the export in Turkey. Even if there are numerous
studies on the relationship between Islamic banks and economic growth, the
studies about the effects of Islamic banks on international trade is limited
availability. Because of this reason, it is thought that the study will contribute to
the literature.
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‫مجلة البشائر االقتصادية‬

Volume 1, Numéro 2, Pages 48-61

- ‫ حالة الجزائر‬- ‫دور البنوك في تمويل التجارة الدولية و تحقيق التنمية المستدامة‬

‫جمال الدين سحنون‬. ‫ نبيلة بلغنامي‬: ‫الكاتب‬

‫الملخص‬

ً ‫ فوجود نظام مصرفي يُمكن االعتماد علية ال يزال َمطلبا‬،‫تلعب البنوك دورا أكثر عمقا ً وأهمية ضمن اقتصاديات الدول‬
‫كون أن التمويل يمثل حجر الزاوية ألية‬، ‫ُملحا ً وحيويا ً بسبب أهمية الدور الذي يلعبه في مجاالت الوساطة المالية‬
‫إن تنشيط التجارة الدولية و تحقيق التنمية المستدامة دائما ً على رأس أولويات أي بلد و للجزائر بشكل‬. ‫عملية تنموية‬
‫ والجزائر تدرك أن أهمية تمويل تجارتها الداخلية والخارجية تكمن في خدمة مشاريع التنمية والخدمات والبنى‬.‫خاص‬
‫وتبرز أهمية البنوك التجارية في تمويل التجارة الخارجية في فتح االعتمادات‬. ‫التحتية؛ وتُحقق بذلك تنمية مستدامة‬
‫المستندية لتمويل عمليات االستيراد والتصدير مبرزتا ً بذلك دورها التنموي واالستثماري وعملها في تحفيز التنمية‬
. ‫االقتصادية والمستدامة من خالل العديد من األدوات والمنتجات المصرفية‬
 )2015 ‫مجلة البشائر االقتصادية العدد الثاني (ديسمبر‬
‫حالة الجزائر‬- ‫دور البنوك في تمويل التجارة الدولية و تحقيق التنمية المستدامة‬
‫ بلغنامي نبيلة‬.‫د‬
‫ سحنون جمال الدين‬.‫د‬

‫الملخص‬
‫ فوجود نظام مصرفي يمكن االعتماد علية ال يزال‬،‫تلعب البنوك دورا أكثر عمقا وأهمية ضمن اقتصاديات الدول‬
‫ كون أن التمويل يمثل حجر الزاوية‬، ‫مطلبة ملحة وحيوية بسبب أهمية الدور الذي يلعبه في مجاالت الوساطة المالية‬
‫ إن تنشيط التجارة الدولية و تحقيق التنمية المستدامة دائما على رأس أولويات أي بلد و للجزائر‬.‫األية عملية تنموية‬
‫ والجزائر تدرك أن أهمية تمويل تحارها الداخلية والخارجية تكمن في خدمة مشاريع التنمية والخدمات‬.‫بشكل خاص‬
‫ وتبرز أهمية البنوك التجارية في تمويل التجارة الخارجية في فتح‬.‫والبنى التحتية؛ وتحقق بذلك تنمية مستدامة‬
‫االعتمادات المستندية لتمويل عمليات االستيراد والتصدير مبرزت بذلك دورها التنموي واالستثماري وعملها في‬
.‫تحفيز التنمية االقتصادية والمستدامة من خالل العديد من األدوات والمنتجات المصرفية‬

Journal of International Monzv and Finance, Vol. 14, No. 1, pp. 47-64, 1995

International trade in banking services

JAN TER WENGEL*

This paper investigates which of the theories of international trade best explains
trade in international banking in its various forms: branches, subsidiaries and
representatives. Strong evidence is found to support the newer economies of
scale theories and it is proposed that the foreign exchange and capital markets
exhibit declining costs to production. It is also discovered that the relaxation of
exchange and capital controls by potential host countries diminishes the
incentives of banks to seek direct representation.

Journal of International Economics 107 (2017) 111–126

International trade, risk and the role of banks
Friederike Niepmann1, Tim Schmidt-Eisenlohr

International trade exposes exporters and importers to substantial risks. To

mitigate these risks, firms canbuy special trade finance products from banks.
Based on unique data with global coverage, this paperexplores under which
conditions and to what extent firms use these products. 15% or $2.5 trillion of
worldexports are settled with letters of credit and documentary collections.
Letters of credit are employed themost for exports to countries with intermediate
contract enforcement, and they are used for riskier destina-tions than
documentary collections. The 2007/2008 financial crisis affected firms’ payment
choices, pushingthem to use more letters of credit. These patterns follow
naturally from a model of payment contracts ininternational trade.