What is Performance Bank Guarantee- Market?
Performance bank guarantee is the agreement between a client and a contractor where the bank compensates the money to any third person if there is any delay in delivering the performance or operation. There are many kinds of guarantees such as an advance payment guarantee, a tender guarantee, etc. This type of guarantee helps to reduce the financial risk involved in the business transaction. It provides the security of work and safeguards the company from probable losses that may arise from non-performance.
The market study is being classified by Type (Tender Guarantee, Financial guarantee, Advance payment guarantee, Foreign bank guarantee and Others), by Application (Small and Medium Enterprise, Large Enterprise and Others) and major geographies with country level break-up.
The Federal Bank Limited (India), CFI Education Inc. (Canada), Deutsche Bank AG (Germany), DBS Bank Ltd (Singapore), Citigroup Inc. (United States), ICICI Bank (India), Soleil Chartered Bank (United States), OP Ryhmä (Finland), The World Bank Group (United States), HDFC Bank Ltd (India), HSBC Group (United Kingdom) and Royal Bank of Scotland plc (United Kingdom) are some of the key players profiled in the study.
The global performance bank guarantee market is fragmented due to the presence of several players at the global and regional levels. The level of competition among the companies in the performance bank guarantee market is intense. Companies investing in new technology to enhance their market presence.
Segment Analysis
Analyst at AMA have segmented the market study of Global Performance Bank Guarantee- market by Type, Application and Region.
On the basis of geography, the market of Performance Bank Guarantee- has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Market Drivers
- Growing Demand for Work and Financial Securities Among The Business
- Increasing Need to Safeguards The Companies From Financial Losses Due To Quality Issues
Market Trend
- Advancement in Banking Technology Provide Online Platform for Business for Performance Bank Guarantee
Restraints
- Economic Slowdown May Restraints The Performance Bank Guarantee Market
Opportunities
- Increasing Number of Small businesses in the Developing Countries Creating Opportunities for Performance Bank Guarantee Market
Challenges
- Lack of Awareness about The Performance Bank Guarantee Among The Business Hindering The Market Growth
“As per Rule 171 of General Financial Rules (GFRs) 2017, Performance Security is to be obtained from the successful bidder awarded the contract for an amount of five to ten percent of the value of the contract to ensure due to performance of the contract. Similar provisions also exist in the Manual for Procurement of Works 2019 and Manual for Procurement of Consultancy & other Services 2017 issued by this Department.”
Key Target Audience
Performance Bank Guarantee Providers, Performance Bank Guarantee Tools Developer, Research and Development Institutes, Performance Bank Guarantee Potential Investors, Industry Associations, Regulatory Bodies and Others