banker's acceptance

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Banker's acceptance

A short-term credit investment created by a nonfinancial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts to face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions.

Banker's Acceptance

Short-term debt obligations that are secured by banks. That is, a bank promises to pay a creditor if a borrower defaults. It is also called a documented discount note.

banker's acceptance

A short-term credit instrument created by a nonfinancial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts from face value in the secondary market on the basis of the credit quality of the guaranteeing banks. These instruments have become a popular investment for money market funds. Also called acceptance.
References in periodicals archive ?
Descriptive Statistics for Bankers' Acceptances by Period This table contains rate levels and spreads across two periods.
At the inception of the Federal Reserve in 1913, it was presumed that Federal Reserve assets would primarily consist of short-term privately issued paper, such as bankers' acceptances, trade acceptances, and bills of exchange.
Bankers' acceptances are instruments through which banks act as intermediaries between importers and exporters, by guaranteeing to make payments to the exporter on a specific date.
Letter of credit - sight basis with bankers' acceptances
According to Central Bank of the UAE's released monthly report, gross bank assets, including bankers' acceptances, increased by 0.
Gross bank assets including bankers' acceptances, decreased by 0.
Assets at banks, including bankers' acceptances, dropped 0.