Using bank guarantees and letters of credit by Ing. Adam Mühl

On 8 April 2024, the Department of International Business was delighted to have the chance to welcome Ing. Adam Mühl, a restructuring manager at ČSOB and an alumnus of Prague University of Economics and Business. He gave a 90-minute workshop on using bank guarantees and letters of credit in practice. After his personal introduction, Mr. Mühl started with a short quiz in which he asked about students’ opinions on the popularity of these instruments. Afterwards, he explained how clients and banks initiate relationships when applying for bank guarantees and presented the types of guarantees used. He also described the profile of typical clients applying for these guarantees and commented on several business cases from practice.

Approximately one-third of the workshop was dedicated to letters of credit. Mr Mühl pointed to the decreasing popularity and mentioned why L/Cs are used less frequently than a decade ago. The workshop discussed how clients imagine a perfect, secure bank product to meet the business sector’s expectations.

During the workshop, 18 students participated and three department members assisted. They raised several questions to which Mr. Mühl swiftly reacted. The Department of International Business would like to thank the expert guest for his willingness to share his experience with students and hopes to have a chance to welcome him again.