What is a Confirming Bank under Letter of credit?

Confirming Bank

 

 

Confirming bank is one of the parties involved in Letter of Credit. Confirming bank as a party of letter of credit confirms and guarantees to undertake the responsibility of payment or negotiation acceptance under the credit. The bank adds its confirmation to a credit upon the issuing bank's authorization or request. Notwithstanding LC issuing bank, LC confirming bank undertakes the obligation of payment under the credit.

 

 

 

 

 

 

 

 

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