A Letter of Credit as an instrument of international trade is one of the most secure methods for a seller to be paid. Besides credit risk considerations, LC are the customary business practice for long-distance trade and a particularly important commission earning service for any bank. The Islamic Letters of Credit (Islamic LC) module constitutes a part of Oracle Banking Trade Finance comprehensive trade financing system. Together with the Islamic Bills and Collections module, it automates the entire gamut of trade financing. The Islamic LC module supports the processing of all types of documentary and clean Islamic LC. It can handle all activities during the life-cycle of an Islamic LC. This includes the generation of messages and advice for all the applicable events and the update of account balances. The system also handles the collection of various commissions and charges defined for an Islamic LC.

• Features
  
• Operations supported on an Islamic LC
  
• SWIFT Messages for an Import Islamic LC
  
• SWIFT Messages for an Export Islamic LC
  
• SWIFT Messages for a Standby Islamic LC
  
• SWIFT Messages for a Clean Islamic LC
  
• SWIFT Messages for a Guarantee
  
• SWIFT Messages for a Shipping Guarantee
  
• Process Commissions and Charges
  
• Variations Supported for an Islamic LC
  
• Red Clause Letter of Credit
  
• Revocable and Irrevocable Islamic LCs
  
• Transferable and Non Transferable Islamic LCs
  
• Revolving and Non Revolving Islamic LCs
  
• Sight and Usance Islamic LC
  
• Open Ended Islamic LCs
  
• Cash Collateral against an Islamic LC
  
• Availment against an Islamic LC