Deutsche Bank says the International Chamber of Commerce's (ICC's) new rules for demand guarantees (URD758) will help it expand its global guarantee and standby letter of credit (L/C) programmes.

Newly added guarantee capabilities out of the bank's New York operations are providing momentum for this expansion, according to the bank.

International network

The new facility allows financial institutions worldwide to route their trade-related guarantee business in addition to their standby L/Cs via the bank's international network according to Deutsche Bank.

It says this means financial institutions can tap into Deutsche Bank's local expertise while leveraging its global processing capabilities.

US guarantee market

According to the bank, while guarantees have long been popular worldwide, banks in the US have hitherto been reluctant to provide them, preferring instead to utilise standby L/Cs.

Deutsche Bank, which claims to be the first bank in the US to employ URDG 758, reckons it is now in a unique position to compete in the global guarantee as well as the standby L/C business.

Specifically, the bank hopes that its broader guarantee capabilities will enable it to expand its relationships with US-based banks and global banks with business in the US.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.