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Definition of

advising bank


bank facilitating firm's overseas credit a bank in an exporter's own country to which an issuing bank sends a letter of credit.

Related definitions of "advising bank"

Recommended Further Reading (Term count)
  • Exporting Against Letters of Credit
    by Buddy Baker
    Letters of credit (LofCs) are a time-honored means of payment for international shipment of goods. Although the vast majority of letters of credit get paid when drawn upon, it is a mistake to think of them as guarantees. Rather, LofCs have specific rules governing how payment works. If sellers do not comply with these rules, they risk not being paid when shipping goods—which is precisely the risk that letters of credit are supposed to guard...

Definitions of ’advising bank’ and meaning of ’advising bank’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’advising bank’ and other financial terms with our online QFINANCE Financial Dictionary.

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