Risks to the Confirming Bank

General Discussion
Post Reply
Shahed
Posts: 168
Joined: Fri Apr 05, 2019 5:26 pm

Risks to the Confirming Bank

Post by Shahed » Wed Mar 13, 2013 12:00 am

When a confirming bank confirms a L/C issued by a issuing bank they take the credit and country risk of the issuing bank only.

My question is what will happen to the documentary and operation risk ?

What will happen if the issuing bank refuse to pay due to some fictitious discrepancy.

Shahed
Top
GSham
Posts: 113
Joined: Fri Apr 05, 2019 5:18 pm

Risks to the Confirming Bank

Post by GSham » Fri Mar 15, 2013 12:00 am

The confirming bank is also taking documentary risk -- it is precluded from dishonour if it fails to reject a discrepant presentation in accordance with article 16.

Regards,
Gabriel
Top
Post Reply

Return to “General”