Securities
Bankers lend money in the form clean advances against promissory note as well as secured advances against tangible and marketable. These reports are only valid MCB normally allow the advances to the customers against the following types of securities:
- Bankers Lien
- Mortgage
- Pledges
- Hypothecation
Bankers Lien
This type of security is accepted in case of advances against share, life policies, bonds, ornaments and fixed deposits etc. It is type of most liquid security.
Mortgages
There are two types of Mortgage. These are following:
- Legal Mortgage
- Equitable Mortgage
Legal mortgage and equitable mortgage are accepted in case of immovable properties like land, building and machinery etc.
Pledge
This type of security is accepted in case of stocks or raw materials. In a pledge, the borrower has not right to sell the stocks with the permission of bank.
FOREIGN EXCHANGE
H. E. Evit states that “the means and methods by which right to wealth express in terms of currency of one country are converted into rights to wealth in term of the currency of another country are known as foreign exchange”.
Encyclopedia Britannic defines Foreign Exchange as “a system by which commercial nations discharges their debts to each other”.
WHY?
- Nature has granted its wealth unevenly
- Need of Imports & Exports
- Because no international Money unit exists
IN MCB
This department works like general banking department with the difference that it deals in foreign currencies like US ($) and Pound Sterling, Dutch Mark (DM), Euro and Japanese Yen (Y). This department deals with the following products/services:
- Foreign Currency Accounts
- Foreign Remittances
- Foreign Bills for Collection
- Selling of Government Certificates
- Imports & Exports
