BANKING


International Banking

Foreign Currency Accounts (FCA)

These accounts are mainly funded with remittances from abroad. Generally, balances on such accounts can be freely transferred without restrictions. FCA can be opened in these foreign currencies: US Dollars, Euro and GBP.

 

Foreign Exchange Account (FX)

This account is funded internally from cash lodgments or credits from other foreign exchange accounts in Ghana or inward remittances. Generally, balances on these accounts cannot be freely transferred without the necessary supporting documentation. Cheques can be issued on both Foreign Currency Accounts and Foreign Exchange Accounts.

 

Home Bound Account

This product is designed for Ghanaians resident in the United Kingdom with special emphasis on those who have not regularized their stay. It is a Cedi Account, however, if an applicant decides to open a Foreign Account under the same dispensation, the Bank has the right to do so under our existing procedure of opening Foreign Account.

 

TRADE FINANCE

The following can be accessed at NIB:

  1. Establishment of Letters of Credit on your behalf for all your imports.
  2. Pre/post shipment credit facilities.
  3. Pre financing of imports

 

DOCUMENTARY CREDIT

  1. Negotiation of Letters of Credit documents.
  2. Offering of pre/post shipment loan facility for exporters.

 

DOCUMENTARY COLLECTION

  1. NIB can receive and handle shipping documents sent on documentary Collection basis.
  2. Settlements of bills for collection on maturity and other foreign trade payments.

 

FOREIGN CURRENCY ACCOUNTS (FCA)

  1. These accounts are funded mainly out of remittance and can be withdrawn in any NIB branch with no charge. I.e. if withdrawal is in Cedis. 2.5% charge is paid when withdrawal is made in said depositing currency.
  2. The accounts are opened in the following foreign currencies.
  3. US Dollars
  4. Euro
  5. GBP etc.
  6. Minimum balance to be maintained in these FCA accounts are
    • USD 100 EURO 60 GBP 50
  7. No initial deposit is required to open this account
  8. Transfer into and from these accounts, could be utilized to undertake the following transactions.
  9. Advance Payments
  10. Documentary Collections
  11. Establishment of letter of credit.

 

FOREIGN EXCHANGE ACCOUNT (FEA)

These are funded internally from cash lodgment or credits from other foreign accounts in Ghana or inward remittances.

  1. Minimum amount to open an FEA account are:
    • USD 300 EURO 300 GBP 200
  2. Minimum balance to be maintained in these accounts are:
    • USD 100 EURO 60 GBP 50

Trade Finance

In order to facilitate the business(es) of our clients, the Bank undertakes these services on their behalf:

 

Letters of Credit (Documentary Credit)

NIB issues Letters of Credit (LCs) on behalf of clients. An LC is a written assurance of a bank (the issuing bank) on the instruction of the applicant (purchaser) to the beneficiary (seller) to pay a specific amount in the agreed currency provided the beneficiary submits documents in conformity with the documentary credit within the prescribed deadlines.

 

Documentary Collection (Bills for Collection)

The Bank also undertakes Documentary Collection on behalf of its clients. Documentary collection is the instruction of the seller (drawer) to his bank to collect the value of the documents from the purchaser (drawee) by handing over the documents against payment or an undertaking to pay.

 

Documents against payment (D/P) or Sight Collection

This is the type of arrangement where the drawer (seller/exporter) presents the agreed shipping documents to his or her bank (i.e., the remitting bank) immediately after the dispatch of goods and instructs the presenting bank to collect the respective payment from the drawee (buyer/importer) through the buyers bank (collecting bank). Payment becomes due at sight.

 

Documents against Acceptance (D/A)

In case of D/A the drawee (buyer/importer) does not have to pay at sight but to accept an issuance draft (Bill of Exchange) drawn on him/her by the seller. The seller can require that, the accepted draft to be returned to him/her or kept in safe custody with the collecting bank until maturity date. At maturity date, the buyer is required to honour the bill of exchange by payment.

 

Cash in Advance/Advance Payment

This is the most basic mode of payment for goods. The supplier receives cash from the buyer before the goods are shipped. Advance payments of up to USD 50,000.00 per importer can be made as allowed by the BoG regulation, but should be regularized within a maximum of ninety (90) days.

 

Open Account

This is a credit relationship in which the buyer pays upon the receipt of goods or on deferred payment basis. An open account transaction is a sale where the goods are shipped and delivered before payment is due, which is usually in 30 to 90 days. Parties to this transaction in the strict sense are the seller/exporter and the buyer/importer. NIB acts as an intermediary through which the funds are sent.

 

Outward Transfers

The Bank also offers Outward Transfers services for its numerous clients. These transfers are usually used for the payment of school fees, medical bills, subscriptions and living expenses among others.

Sign-up to receive our newsletter

...on Social Media