Advising bank

Advising bank
Definition
Correspondent bank (usually in the exporter's country) of an issuing bank (usually in the importer's country) that receives a letter of credit (L/C) from the issuing bank for authenticating it and informing ('advising') the exporter (the L/C's beneficiary) that a L/C has been opened by the importer in the exporter's favor. The advising bank usually also takes on other roles in the transaction, such as (1) confirming the letter of credit(playing the role of the 'confirming bank'), (2) accepting a bill of exchange by endorsing it (becoming the 'accepting bank') and/or, (3) paying the exporter on presentation of documents (becoming the 'paying bank' or 'negotiating bank). Also called adviser bank or nominated bank.
advising bank is in the Banking, Commerce & Finance and International Trade & Relations subjects.
advising bank appears in the definitions of the following terms: reasonable care to check apparent authenticity, advised credit, presentation period issuing bank, transferable letter of credit (L/C) , presentation date, nominated bank advice for advising bank payment under reserve and pre advice and
preadvice , engagement, second issuing bank, confirming bank , back to back letter of credit (L/C), transferable letter of credit (L/C) payment under reserve , presentation date, adviser, straight credit, advice for advising bank, presentation period , reasonable care to check apparent authenticity, issuing bank, direct pay letter of credit (L/C), accepting bank, nominated bank, advised credit