bankers' acceptance definition

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.

bankers' acceptance is in the Accounting & Auditing, Banking, Commerce & Finance and International Trade & Relations subjects.

bankers' acceptance appears in the definitions of the following terms: money market instruments, money market, money market investment and fine trade bill

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