ISB Seminar on "Documentary Credits”

Home - Campus Life - News & Activities - ISB Seminar on "Documentary Credits”

In its ongoing efforts to continually introduce students to real world applications of classroom theory, the International School of Business (ISB) held a seminar on Documentary Credits at the MUBS Beirut Campus on the 3rd of December. MUBS was honored to have Mr. Izzat Fathallah, Recovery & GM Officer with the Office of the General Manager of BLOM Bank and Chairman of Arope Insurance, as the seminar guest speaker. He began the session with a general introduction of the Lebanese banking industry, an overview of the typical structure of a Lebanese bank (different departments/ main responsibilities…), then discussed documentary credits in detail; the seminar examined the Letter of Credit process and offered guidance on how to create a workable credit.

The use of Letters of Credit has increased significantly by exporters and importers because of the global economic situation, political insecurity in some markets and the withdrawal of credit insurance cover. Many Governments have now introduced The Letter of Credit Guarantee Scheme via their Export Finance. The intention is to stimulate exports to emerging markets by sharing the credit risk associated with Letters of Credit from these markets. This should contribute to a further increase in usage. To use Letters of Credit effectively, importers and exporters will need to fully understand the dynamics and terminology of an LC, the role of each party, the importance of the shipping documents and the level of security offered.

The seminar also introduced the different interests of exporters, importers and banks, as well as discussing methods of risk reduction for the concerned parties. Mr. Fathallah also discussed methods of creating and collating accurate documents, the role of the draft (Bill of Exchange) and considered the options for negotiation of the credit and the current version of the rules that govern letters of credit (UCP600).

Before closing, Mr. Fathallah discussed the internship/employment opportunities in Lebanese banks; the skills they are looking for in business graduates during the recruiting process, types of employment exams they require from students with actual samples, etc …

Around 75 Banking and Finance students at the ISB were attending the seminar from the 4 MUBS campuses.

Mr. Izzat Fathallah is the Recovery & GM Officer with the Office of the General Manager of BLOM Bank and Chairman of Arope Insurance. He is member of the Airbus Juniors Program, Young Arab Leaders, and the Global Shapers Initiative of the World Economic Forum. He has completed Executive Education from Ecole Superieure des Affaires (ESA) and graduated from the Olayan School of Business at the American University of Beirut (AUB).

Copyright © 2016 Modern University for Business & Science Contact us FAQ Jobs Copyright