Innovative letter of credit (L/C) offerings have helped Commercial Bank of Ceylon (CBC) to be recognised in the 2021 Asian Banking and Finance (ABF) Awards as Sri Lanka's domestic trade finance bank of the year.

The award falls into ABF's wholesale banking awards category, which recognises banks that have successfully handled significant deals or launched innovative initiatives to deliver exceptional client services.

Innovative L/Cs

Product innovations contributing to the award to CBC include its launch of a new trade finance product featuring the discounting of usance domestic L/Cs and being instrumental in designing a digitalised-screening ICT platform.

Other innovative trade solutions included convincing regulators to accept e-documents and special arrangements to facilitate the clearance of motor vehicles.

Client and national benefits

These innovations benefit the bank's trade customers according to a CBC statement. It goes on to say that by honouring L/C presentations even in the event of force majeure the bank has also helped foster the country's international reputation.

As a member of International Finance Corporation's (IFC's) L/C oriented Global Trade Finance Programme and the Asian Development Bank (ADB), CBC says it was able to obtain better pricing. The bank maintains a worldwide correspondent bank network that exceeds 1,150 banks in more than 100 countries.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.