Bank Guarantees, Credit Cards, and Banking Operations: A Comprehensive Guide
Bank Guarantees
A surety coupon bank guarantee is issued by a bank at its client’s request to assure another person of the faithful performance of an obligation. There are two main types:
- Collateral Deposit: The policyholder has the funds available and immobilizes them in the bank.
- Ballot Guarantee: The policyholder obtains a loan from the bank to cover the guarantee.
Extinction
The guarantee is extinguished when the beneficiary collects it within its validity period. It can also be returned to the policyholder with proper endorsement.
Insider Trading and Stock Market Regulations
Insider Information: Undisclosed market knowledge that can influence securities trading. Stock markets rely on public trust, regular and reliable markets, and equality between investors. Brokers have a duty to provide transparent and detailed information.
Duties When Possessing Insider Information
- Remain strictly confidential.
- Do not use it for personal or others’ benefit.
- Do not purchase securities based on the information.
- Do not use it to gain profits or avoid losses.
Extended and Special Banking Hours
Banks can issue binding agreements during extended hours (9:00 a.m. to 4:00 p.m.). However, certain services are restricted outside regular hours:
- Receiving deposits in current accounts.
- Providing credit extensions (other than consumer credit).
- Paying checks (except for pre-arranged payments).
Credit Card Concepts and Contracts
A credit card allows the holder to purchase goods and services from affiliated establishments, paid for by a credit line from the issuer. Several contracts are involved:
- Between the issuer and the cardholder.
- Between the bank and the merchant.
- Between the card user and the merchant.
- Between the user and the system administrator (for company credit cards).
Persons Involved
- Issuing Bank: Manages the card and payments.
- Management Company: Centralizes payment information.
- Affiliate Establishment: Accepts card payments.
- User: The cardholder, a natural or legal person.
Credit Card Operations in Foreign Trade
Credit card operations are used in foreign trade transactions by banks dealing in foreign currency.
Mortgage Capital Guarantees
These transactions involve credit secured by a mortgage on a property.
Credit Limits and Penalties
Banks face penalties for exceeding lending limits:
- Credit to a Person: 10% fine on the excess amount.
- Credit to Related Persons: 20% fine on the loan amount.
- Credit to Bank Workers: Total credit cannot exceed 1.5% of bank capital, and individual credit cannot exceed 0.15% of assets.
Demand and Term Deposits
Demand Deposits: Payable upon request by the depositor. These are protected and offer less profit potential. Term Deposits: Held for a specific period.
Bank Secrecy and Confidentiality
Bank Secrecy: Protects information about deposits. Information can only be disclosed to the account holder or their authorized representative. Reserve Bank Secrecy: Protects information related to other bank transactions.
Exceptions to Secrecy
Courts can order disclosure of information related to specific cases. The public prosecutor can also request information with court authorization.
Custody and Trust Services
Custody: Banks hold cash and securities for clients, charging a fee. Trust: Clients mandate the bank to manage assets based on its solvency and resources.