Home > Term: bankers' acceptance
bankers' acceptance
Countersigning (endorsement) of a bill of exchange by the buyer's (or importer's) bank. Bankers acceptance establishes that payment of the bill on its maturity date is now guaranteed by the endorsing bank. Banks agree to countersign a bill of exchange when they are comfortable with the buyer's financial strength and stability, and on payment of the acceptance fee.
- Part of Speech: noun
- Industry/Domain: Accounting
- Category: General accounting
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