Bank instrument monetization is the process of converting financial instruments such as Bank Guarantees (BG), Standby Letters of Credit (SBLC), Letters of Credit (LC), or Medium-Term Notes (MTN) into liquid cash or credit. This method is widely used by businesses and investors to obtain capital for projects, trade finance, or investment opportunities.
Monetization involves using a bank-issued instrument as collateral to secure funding. The process typically follows these steps: