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Commercial Lending Business Model

Send Funds via

MT

Send Funds via

DDA

Send Funds via

Other

Send U.S. Dollars

to FX

  • Wire transfers issue payment instructions to the Fed or CHIPS. These instructions include the receiving party's Fedwire or CHIPS code, the amount, textual description, attentions, etc..
  • Other payment methods include instructions to oher deparments of the lender, such as Corporate Trust, Commercial Paper, Private Client, a local branch, or by issuing a check.
  • For FX drawdowns, the lender converts U.S. dollars to a foreign currency. One merthod could be to sending USD to an internal foreign exchange desk which in turn passes the funds FX to the borrower. In this case, the lender credits the appropriate FX account, and passes an reconciling inter-dept entry to FX.
  • A checking account for the borrower, maintained at the lender bank, receives credit instructions that include the amount, value date, and description.

LIQ83

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