The issuing bank or the central bank - the bank that issues the money, securities or payment instruments - credit cards, check books.
Banks that issue money
Money issuer country are generallycentral banks. Under Russian law, the release of the money made by the CBR. Issue of cash in Russia is made on the basis of the principle of monopoly and uniqueness, ie, this power has only the Bank of Russia.
Central Bank also controls the money supply in the country of turnover and can, if necessary, withdraw or additionally to issue money. The decision was taken by the Board of Directors of the Bank of Russia.
As a commercial bank may act issuing banks bank money, but their actions are under the control of the Central Bank.
Banks that issue securities
Like other legal entities, the bank may alsoto act as issuer of securities (traveler's checks, stocks, bonds, savings certificates). The issue of securities is carried out in order to attract additional borrowings to finance its own activities, or for the formation of the authorized capital.
When the Bank exercises its right issue, it also undertakes to set out on issued securities.
Banks that issue credit cards
The issuing bank - an organization that produces andprovides banking cards. Credit cards that are issued by the issuing bank are the property of the bank, they are transferred to the temporary use of their holders. Banks are the guarantor of fulfillment of financial obligations arising from the use of these cards.
Issuing Bank performs a number of functions. Before you give the card to the customer, he opens an account for its holder, from which subsequently debited funds to the seller of the goods. The bank must provide the client with account statements and to carry out accounting operations on a map. The issuing bank is obliged to ensure payment security and to consider the customer's complaint.
The Bank may act not only by the issuerbank card, but also simultaneously be the Bank is the acquirer, ie authorization to produce the card when paying for it in retail outlets and provide transfers from the seller to the buyer.
Also, the issuing bank is called Bank, whichIt is acting on behalf of the applicant (payer) on the opening of a letter of credit. He is obliged by request of the beneficiary (payee) under specified conditions, the agreement (for example, upon presentation of a document on the shipment, invoices) to transfer the money in his favor.
The issuing bank is also found in the collection operations. He must for a client to receive the payment and acceptance of payment.