Banking operations in private international lawComparative study

Abstract

analyze real-world developments and assess the ability of legislation to keep pace with the evolving field of international trade. Documentary credit has assumed a significant position and plays a prominent role in this domain. It is considered one of the most important and widely used forms of banking operations today, thanks to its effective features that have contributed to the facilitation and growth of international trade.

Moreover, documentary credit serves as a key instrument in promoting trade exchanges between countries. Due to the involvement of multiple parties in such international trade transactions, a variety of laws and regulations often come into play. The intermediary bank selected by one of the parties may be subject to legal systems that differ from those governing the seller or the buyer. This divergence can lead to conflicts of law across different jurisdictions.

A conflict of laws arises when an international relationship involves a foreign element, thus opening the door for multiple legal systems to claim applicability, with each country asserting its right to adjudicate the dispute.