The definition of the
A guarantee given to the bank over the risk of the failure of the debtor in paying off non-cash loan facility (non-cash loan) provided by the bank, such as letters of Credit, SKBDN & SBLC.
Nature of the Three-party Agreement involving the debtor’s bank, and insurance companies with the Indemnity Agreement is a form of Recourse Agreement to the debtor.
In terms of insurance companies paying out claims to the bank, then the debtor is obligated to reimburse the insurance company claims worth (plus a fine flower) that had been paid by the insurance company to the bank.
Indemnity insurance companies amounting to 100% of the magnitude of the losses of the banks.
Types of Credit Guarantee
1. Guarantee the opening of Import letters of Credit (Sight and Usance LC LC sublimit TR/UPAS)
The guarantees given by the insurance company to the bank opening import l/c for the benefit of the importer in case of failure of payment (payment default) at maturity L/C.
2. Opening letter of credit guarantee of domestic Berdokumen (SKBDN) good Sight or Usance sublimit TR/UPAS)
The guarantees given by the insurance company to the bank the interest of importers of SKBDN opening in case of failure of payment (payment default) at maturity SKBDN.
3. Counter guarantees Bank guarantees and Standby Letter of Credit (SBLC)
The guarantee given to the bank issuer Bank guarantee and/or customer interest for SBLC (customers) in a customer experiencing a tort.
Object the securing Bank guarantees, among others, for the purposes of:
- Guarantee Offer/Bid Bond
- Guarantee The Implementation/Performance Bonds
- Guarantee Of Advance Payment/Advance Payment Bond
- Payment Guarantee/Payment Bond
- Guarantee Maintenance/Maintenance Bond
- Guarantee Of Retention/Retention Bond
- Warranties for other purposes (except a guarantee to get the financing facility from a financial institution)
Benefits Of Credit Guarantee
- Transactions that are not bankable because it does not meet the requirements of collateral but feasible can be aided by the existence of the insurance, which can replace a portion of the required banking collateral in support of granting credit to the sector real;
- For non-cash loan transactions in particular, depends on the risk assessment based on analysis of the risks of insurance companies which also consider the analysis of banks. Insurance companies can provide a guarantee to 100% of the value of non-cash loans given by banks and collateral requirements/collateral are lighter for customers;
- Reducing the risk premium so that the lending rate can be more competitive. The credit risk transferred to the insurance can be taken into account as a decrease in the element of risk in the pricing of interest rate;
- Fee-based income and the placement of cash collateral of the debtor in the bank so that the bank can draw benefits from the Fund;
- By utilizing the insurance facility, the bank has developed a strong strategic partnership with one of the safety net (safety net) against the risk of banking credit over disalurkannya. The Bank does not have to bear the entire burden of own losses (100% own retention) that in the long run can result in catastrophic risks, in a manner likely to divert the risk of losses to the insurance;
- Insurance coverage against the risk analysis/assurance that shall be given banking to insurance. Thus, the bank will obtain a second opinion from an insurance company;
- Insurance companies can provide the top referral clients that have a good track record of being able to utilize the facilities of the bank;
- Banks more competitive, courageous and passionate in disbursing loans to the real sector with the credit protection and incentive nonsubsidi the benefits above. Thus the function of banking intermediation in particular to financing the real sector will increase.
Benefits For Real Sector/Debtor
- The real sector would be helped by the existence of liquidity insurance products that became the bridge connector between the real and banking sector;
- Competitiveness of the real sector would be it helpful enough liquidity as well as through credit facilities with better interest rates because of the bank’s financing is supported by insurance companies;
- New jobs would be created so as to reduce the unemployment rate.