Corporate Banking: Key Activities

These flashcards cover key concepts and vocabulary from the lecture on corporate banking, focusing on liquidity management, guarantees, and various payment instruments.

Liquidity management

The process of managing a firm’s liquid assets to ensure it can meet short-term obligations.

Cash flow generation

The process through which a company brings in cash through operations, investments, and financing.

Documentary credit

A bank's commitment to pay the seller upon submission of shipping documents.

Forfaiting

A financing method allowing exporters to sell their medium- and long-term receivables at a discount.

Performance guarantee

A guarantee provided by a bank that a party will perform its contractual obligations.

Documentary collection

A process where an exporter provides shipping documents to their bank, which then forwards them to the importer’s bank for payment.

Negotiable instruments

Financial documents that guarantee payment, such as bills of exchange or cheques.

Guarantees

A bank's assurance to cover a loss or obligation for a beneficiary under specified conditions.

Advance payment guarantee

A type of guarantee where a bank commits to pay the seller an amount representing an advance payment.

Payment instruments

Methods used to underwrite the payment obligations of the importer or market agent.