Deutsche Bank’s New York branch has added guarantee capabilities to its standby letter of credit (LC) programme for financial institutions.
Financial institutions will now be able to route their trade-related guarantee business in addition to their standby LCs via Deutsche’s international network.
While guarantees have been commonly issued in the global banking community and widely accepted in all business industries, banks in the US have been reluctant to provide guarantees and have only been utilising standby LCs, Deutsche says.
Peter Knodt, the bank’s head of trade finance for financial Institutions, global transaction banking says: “We are pleased with the positive interest and success in the market.
The bank’s global guarantee and standby LC programme with the addition of guarantees in the US brings the world to our customers.”