Banking · Corporate Banking

Consider the various corporate banking functions listed below: Statement 1: Project Finance is the funding of long-term infrastructure and industrial projects based upon the projected cash flows rather than the balance sheets of sponsors. Statement 2: Banks participate in Consortium Lending, where several banks join together to fund a single large project, sharing risk under a common Inter-Creditor Agreement (ICA). Statement 3: Syndicated Loans differ from consortiums in that one Lead Bank manages the deal and can sell portions of the loan in the secondary market. Statement 4: The Asset-Liability Management (ALM) committee monitors project finance because long tenures create a Maturity Mismatch with short-term deposits. Statement 5: Credit Default Swaps (CDS) are financial derivatives used as insurance against the default of a borrower. Statement 6: Letter of Credit (LC) and Bank Guarantee (BG) are non-fund based services providing a payment guarantee to the seller or owner without immediate cash outflow. Statement 7: External Commercial Borrowings (ECBs) are foreign currency loans raised by Indian entities subject to FEMA guidelines. Identify the statement that correctly specifies the non-fund based nature of the service.