accepting house


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Accepting Bank

A bank in a country to which another bank sends a letter of credit on behalf of a client. The accepting bank honors the letter of credit and transfers requested funds to the client. This is similar to an advising bank, though the latter term refers exclusively to a bank in different country; an accepting bank may be (but is not necessarily) in the domestic country.

accepting house

a division of a MERCHANT BANK or similar organization that ‘accepts’ (guarantees to honour) a BILL OF EXCHANGE, should a borrower default on the loan, in return for an agreed fee. By ‘accepting’ the bill the accepting house makes the bill more negotiable and so enables the bill to be discounted at more favourable interest rates.

accepting house

a MERCHANT BANK or similar organization that underwrites (guarantees to honour) a commercial BILL OF EXCHANGE in return for a fee. See DISCOUNT, REDISCOUNTING, DISCOUNT MARKET.
References in periodicals archive ?
In 1914 twelve out of twenty leading accepting houses (merchant banks) were of foreign origin.