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 ?
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.
Letter of credit - sight basis with bankers' acceptances
The results show that whereas the highest contribution comes from the Treasury Bills with a t-value of 8.484, the least contribution however, is from treasury certificates with a t-value of 0.311.Others are bankers' acceptances, certificates of deposits and commercial papers with t-values of 1 405, 1.147 and 0.930 respectively (see tables 4.4, 4.5).This order of importance is depicted thus;
Export-credit insurance, which is provided through the private market and government-sponsored agencies, offers a lower cost alternative to bankers' acceptances. BAs are regulated by the Federal Reserve, and prior to 1977, were traded and held by the Federal Reserve for monetary policy purposes.
The loan agreement governing the major part of the debt to be retired provides for interest to be paid at the rate of bankers' acceptances plus 6%.
capital controls)."(32) Broad, deep, and open short-term financial markets are required to supply assets appropriate for international currency use (such as treasury bills, commercial paper, and bankers' acceptances), reflecting foreigners' preference for liquid and safe short-term financial instruments.
2) Trading in commercial paper issued by its client, government securities, promissory notes, bankers' acceptances, and other money market instruments, acting as a broker or acting on its own behalf.
Although regulations restrict the intermixing of domestic and international financial transactions to a significant extent, IBFs may purchase or sell assets such as loans, loan participations, securities, certificates of deposit and bankers' acceptances from or to any domestic or foreign customer.
The UAE gross bank assets, including the bankers' acceptances, hit Dh2.895 trillion ($786 billion) in March, down from Dh2.909.5 trillion in the preceding month, according to statistics released by the UAE Central Bank.
Summary: Gross bank assets, including bankers' acceptances, increased by 0.9%
Gross bank assets, including bankers' acceptances, increased by 0.3 per cent, rising from Dh2,687.1 billion at the end of November 2017 to Dh2, 695 billion at the end of December 2017.
However, core shadow banking activity - including entrusted loans, trust loans, and undiscounted bankers' acceptances - has continued to grow, increasing in share when compared with the broad shadow banking sector.'