Description
Contingency items – also called off-balance sheep items – are agreements made by banks in which, for a fee, the bank undertakes to act as an intermediary, guaranteeing a specific transaction between other parties. In recent years, banks have greatly increased their reliance on contingency financing. Zamora explains the various types of contingency financing, including swap transactions, forward rate agreements, bankers’ acceptances and standby letters of credit, and shows bankers how to minimize their risk and maximize their profit potential when dealing in these new markets. The text has been aimed at bank financial officers and other banking professionals, corporate financial officers, business school lecturers, and banking students.
