Bank Guarantee Definition

Please tell me the Bank Guarantee Definition…

Here is the Bank Guarantee Definition:

“A promise made by a bank to give payment to another bank or lender on a bond, loan, or other liability in the event of default. Banks normally make guarantees on behalf of certain clients to promise payment on loans. Bank guarantees reduce the risk to loans and liabilities and usually improve the credit agency ratings of bonds.”

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1 Response to “Bank Guarantee Definition”

  1. Hari Shivadas

    is it possible to discount or transfer a bank guarantee