The effects of deputizing the bank to collect the bill of exchange in favor of the beneficiary according to the Saudi commercial papers system

الملخص EN

The effects of deputizing the bank to collect the bill of exchange in favor of the beneficiary according to the Saudi commercial papers system

Yasser Almuhaidb
Department of Law, College of Science and Theoretical Studies, Saudi Electronic University.

E-mail: seu2017@hotmail.

com
:
Banks play a major role in the Saudi financial system.

They facilitate trade by serving as financial intermediates, agents of ensuring economic liquidity and clearing houses for different bills.

Banks facilitate the issuance and collection of the bills of exchange on behalf of the beneficiary.

The beneficiary of the bill of exchange can be the payee or any other person who has been endorsed at the back of the bill of exchange.

Using qualitative thematic analysis, this study evaluates the implications of deputizing the banks to play the role of collecting the money from the bills of exchange upon their maturity.

Various secondary data were explored including past studies, scholarly articles, and articles that express the views and standpoints of different stakeholders in the Saudi commercial paper system.

The findings show that deputizing the bank would contribute to an immense growth in the use of bills of exchange, but it would erode the confidence that the foreign traders place in the economic and financial system of Saudi Arabia to handle their affairs.