Advising bank

Advising bank,

Definition of Advising bank:

  1. Representative bank (usually in exporters) of the issuing bank (usually in the importing country) which is the issuing bank for verification and notification of the exporter's recipient (L / C) Receives Letter of Credit (L / C) from the importer who opened the Letter of Credit for the benefit of the exporter. Informing banks generally perform other functions in the transaction, such as (1) letters confirmation (bank confirmation function), (2) receipt of notes by confirmation (acceptance by the recipient bank) and / Or (3) documents showing exporters payment (becoming a paying bank or becoming a bank). Also known as Advisory Bank or Designated Bank.

Meaning of Advising bank & Advising bank Definition