Guaranteeing Bank

Guaranteeing Bank

A bank that ensures payment on a note, bond, or other debt instrument in the event of default. It is important to note that the avalising bank is not a party to the transaction in any other way. Avalising banks are more common in Europe than in the United States, as American banks have tighter restrictions on bank guarantees. See also: aval.
References in periodicals archive ?
Global Banking News-August 4, 2011--Banking association in Denmark faults government stance on not guaranteeing bank debt(C)2011 ENPublishing - http://www.
Besides, the government also plans to adjust its policy of fully guaranteeing bank deposits, by shortening the guarantee term or reducing the guaranty amount.
A GOVERNMENT bill guaranteeing bank deposits up to e1/4100,000 is in its final stages and should come before parliament for voting sometime over the next couple of weeks.
The Federation of Small Businesses said a survey of thousands of companies found that moves aimed at guaranteeing bank lending and boosting consumer spending were having "no impact.
MINISTERS yesterday pledged to explore guaranteeing bank loans to crisishit car manufacturers in a bid to kick-start lending, after an emergency summit.
Under his plan, which passed in Congress that summer, the government went beyond merely guaranteeing bank loans.