Who is an Issuing Bank under Letter of credit?

Issuing Bank

 

Issuing Bank is one of the main parties involved in an LC. Letter of credit is opened and finalized by the issuing bank at the request of an applicant or its own behalf and takes responsibility to pay amount on receipt of documents from supplier of goods (beneficiary under LC).

Issuing bank is the final payer of the letter of credit. Regardless of whether other banks don't pay to the beneficiary against a complying presentation, issuing bank must pay the letter of credit sum.

 

 

 

 

 

 

 

 

 

 

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