These are generally lending devices, such as standby letters of credit, that do not represent a direct claim on the bank's assets.

Export transactions, including support for standby letters of credit; export development expenses, including trade show participation and translation of product literature.

Direct credit substitutes in which a bank substitutes its own credit for a third party, including standby letters of credit.

Bank guarantees and standby letters of credit are also available.

The deal involved the purchase of a standby letter of credit - effectively an IOU issued by a bank with a fixed redemption date.

Aware that the world of standby letters of credit is confusing, he explains that they are often used in the import and export business.

The exporter does not expect to get paid for his goods for 12 months so he is given a credit note - a standby letter - from the importer's bank.

Many standby letters of credit are forgeries: often the issuing bank does not even exist.

In 1989, the Financial Institutions Reform, Recovery and Enforcement Act affirmed their right to reject any standby letters they find burdensome.

Changing the Concept of Capital But for certain off-balance sheet obligations, like standby letters of credit, the weighting would only be 50 percent.