Advising Bank Law and Legal Definition
A bank giving notification of the issuance of credit by another bank is an advising bank. An advising bank is a correspondent bank handling letters of credit for a foreign bank. It is also known as notifying bank, as it notifies the exporting firm of the terms and opening of the letter of credit. An advising bank advises a beneficiary that a letter of credit opened by an issuing bank for an applicant is available. The beneficiary is usually an exporter and the applicant is the importer. The advising bank authenticates the letter of credit issued by the issuing bank. However, the bank is not responsible for the payment of credit.
