Confirming Bank


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Related to Confirming Bank: Advising bank, letter of credit

Confirming Bank

The bank which has confirmed a letter of credit opened by another bank.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Confirming Bank

A bank that makes assurances to the relevant party that a letter of credit from another bank is genuine.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
SABB's Managing Director David Dew said: "We are proud of our association with the IFC and of our recognition for the second year running, as the most active confirming bank in the MENA region under the IFC's Global Trade Finance Program.
Additionally, since the bank gets to choose the confirming bank, everyone will be aware of which bank that is, meaning the risk of an injunction is still present in a confirmed LC.
The confirming bank creates the same obligation to the beneficiary as the issuing bank when the confirming bank adds its confirmation.
The facility is therefore quite timely, as it will enable Nedbank to grow its asset book as well as increase its visibility as a credible confirming bank for African trade transactions.
This requires the confirming bank to review the credit risk of the issuing bank and protects the exporter if either the importer or the issuing bank becomes insolvent.
It is a long-standing partner of the EBRD, and became a confirming bank under the TFP in March 2003.
IFC covers payment risks for 172 banks in 77 countries, under which, First Gulf Bank will register all of its branches and subsidiaries as a Confirming Bank, which will allow FGB to undertake risk exposure in emerging markets private trade flows with the safeguarding of the IFC and its availing covers.
The RPA will enable FRB to increase its visibility as a established confirming bank for trade transactions originated by African issuing banks.