Documentary Credit Transaction Essay Example | Topics and Well Written Essays - 2250 words

Documentary Credit Transaction - Essay Example The economic activities have accelerated in the current century, the economic opportunities have been explored, and wealth proportion has expanded instead of getting more concentrated. The trade partners therefore adopted a policy of variance, aimed at adaptability towards economic progression. The economic expansion and rapid circulation of wealth intensified the activities of the banking sector, and for the procurement of its share, the trade partners broadened the horizon of its banking facilities. The requirements and the expectations of the consumers revolutionized, and for this purpose the banking sector was compelled to adopt and introduce set of revised and modified scheme which primarily focused on lending services, the deposition activities although gained a massive momentum, but the contribution in this regard was mainly from the wealthy people, the lending services were sought by the industries, corporate world and the major portion of society. Initially the banking insti tute was reluctant to adopt the concept of accountability and transparency, but once the population of the consumers rose, and the banking institute developed linkages with different clients, the bank was forced to ensure that accountability and transparency is practiced in all its form. The economic expansion did not only broaden the horizon for the trade partners, rather the other banking institutes also strengthen and received an equal opportunity for procurement of contracts and opportunities. The trade partners therefore had to intensify the implementation of the plan in the wake of economic expansion, and rising competition. The trade partners developed an strategy, previously when the economic activities were sluggish, the bank focused on the areas where the community sought financial assistance and safeguard for the deposition of their money and other valuables, lately when the technological revolution improved the qualitative and the quantitative standards of living, the ba nk adopted an entirely different strategy to overcome the needs of the customers, not by offering to them what they require, but by offering to the customers all which they should inherit in this period of technological development, so that the improved quality standards can be availed by the customers. The bank focused from routine operation to an arena of innovation, where the need was never felt but generated to apprise the customers about the qualitative enhancement of life, through different financial schemes (Robert, 2007). Documentary Credit Transaction: Significance The globalization has expanded the network of credit transactions. There were days when the credit transactions were confined within geographical terrains, but the global trade has conceived the concept of international banking. The exchange of economic and trade relations have essentially required the development of the units which shall support and protect the credit transactions. The concept of international banking system evolved with special provisions which secured the