Second Advising Bank

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Second Advising Bank

Second Advising Bank in International Trade

Meaning of Second Advising Bank, according to the Dictionary of International Trade (Global Negotiator): In a letter of credit transaction, the seller usually prefers that the incoming letters of credit be advised through its bank account. However, if the seller's, bank lacks a correspondent banking relation with the issuing bank, it is unable to authenticate the letter of credit. In such cases, the issuing bank will transmit the letter to its correspondent bank (the first advising bank) for authentication, with instructions to relay the credit to the seller's bank (the second advising bank).

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