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An advising bank (also known as a notifying bank) advises a beneficiary (exporter) that a letter of credit (L/C) opened by an issuing bank for an applicant (importer) is available. An advising bank's responsibility is to authenticate the letter of credit issued by the issuer to avoid fraud. The advising bank is not necessarily responsible for the payment of the credit which it advises the beneficiary of. The advising bank is usually located in the beneficiary's country. It can be (1) a branch office of the issuing bank or a correspondent bank, or (2) a bank appointed by the beneficiary. An important point is the beneficiary has to be comfortable with the advising bank.
In case (1), the issuing bank most often sends the L/C through its branch office or correspondent bank to avoid fraud. The branch office or the correspondent bank maintains specimen signature(s) on file where it may counter-check the signature(s) on the L/C, and it has a coding system (a secret test key) to distinguish a genuine L/C from a fraudulent one (authentication).
In case (2), the beneficiary can request the applicant to specify his/her bank (the beneficiary's bank) as the advising bank in an L/C application. In many countries, this is beneficial to the beneficiary, who may avail themselves of the reduced bank charges and fees because of special relationships with the bank. Under normal circumstances, advising charges are standard and minimal. In addition, it is more convenient to deal with the beneficiary's own bank over a bank with which the beneficiary does not maintain an account.
available. An advisingbank's responsibility is to authenticate the letter of credit issued by the issuer to avoid fraud. The advisingbank is not necessarily...
bank means the bank with which the credit is available or any bank in the case of a credit available with any bank"). The advisingbank is the bank that...
comes mostly from the collection of fees for advising on a transaction, contrary to a commercial or retail bank. From the passage of Glass–Steagall Act in...
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities...
beneficiary who is to receive the money, the issuing bank of whom the applicant is a client, and the advisingbank of whom the beneficiary is a client. Almost...
and country levels. As a member of the bank's senior management team, the person advises the president and bank's management on economic issues. Chief Economist...
Street in the 1970s and 1980s. Boutique investment banks took a greater share of the M&A and advising market at the same time. Large, prestigious boutique...
MCB Bank Limited (Urdu: ایم سی بی بینک) is a Pakistani multinational commercial bank which is based in Lahore, Punjab, Pakistan. The majority of shares...
The West Bank (Arabic: الضفة الغربية, romanized: aḍ-Ḍiffah al-Ġarbiyyah; Hebrew: הַגָּדָה הַמַּעֲרָבִית, romanized: HaGadáh HaMaʽarávit), so called due...
A bank account is a financial account maintained by a bank or other financial institution in which the financial transactions between the bank and a customer...
include: Advising Playboy Enterprises on going private in March 2011 Advising Softbank Group on acquiring Sprint Nextel in July 2013 Advising Steve Ballmer...
Europe List of banks in Oceania List of international banking institutions Advisingbank Central bank List of central banks Commercial bank Community development...
Karnataka Bank Limited is an Indian private sector bank based in Mangalore. It is an 'A' Class Scheduled Commercial Bank with a network of 915 branches...
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to...
Bank of America Private Bank (formerly U.S. Trust) was founded in 1853 as the United States Trust Company of New York. It operated independently until...
bank holding company is a company that controls one or more banks, but does not necessarily engage in banking itself. The compound bancorp (banc/bank...
The Bangladesh Bank robbery, also known colloquially as the Bangladesh Bank cyber heist, was a theft that took place in February 2016. Thirty-five fraudulent...
On March 10, 2023, Silicon Valley Bank (SVB) failed after a bank run, marking the third-largest bank failure in United States history and the largest since...
The Reserve Bank of India, abbreviated as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. Owned...
West Bank were advised by the International Court of Justice to be unlawful. As of January 2023, there are 144 Israeli settlements in the West Bank, including...
for overall supervision of Regional Rural Banks, State Cooperative Banks and District Central Cooperative Banks in India. It was established under the NABARD...
The Commonwealth Bank of Australia (CBA), or simply Commonwealth Bank, is an Australian multinational bank with businesses across New Zealand, Asia, the...
retail banks and investment banks. Commercial banks include private sector banks and public sector banks. The name bank derives from the Italian word...
A central bank, reserve bank, national bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary...
The Bank for International Settlements (BIS) is an international financial institution which is owned by member central banks. Its primary goal is to...
Wholesale banking is the provision of services by banks to larger customers or organizations such as mortgage brokers, large corporate clients, mid-sized...
merger plan. After three weeks Riyad Bank hired Goldman Sachs to advise on the merger that would create the largest bank in the kingdom with $182 billion...
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