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
money market funds and other money market instruments including commercial paper, certificates of deposit bankers' acceptances and corporate medium-term notes.
The total size of trade finance assets outstanding globally is approximately $4 trillion, of which only about $500 billion, or 13%, is bank-intermediated in the form of bank products such as letters of credit, bankers' acceptances and trade loans.
In addition, there were outstanding undrawn letters of credit of $226 million and bankers' acceptances of $300 million outstanding against the revolver.
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.
9 million and bankers' acceptances of $430 million outstanding against the revolver.
Government securities, certificates of deposit, repurchase agreements, commercial paper, bankers' acceptances, bank time deposits and money market funds.
Assets at banks, including bankers' acceptances, dropped 0.