Bank Guarantee Definition

Question:
Please tell me the Bank Guarantee Definition…

Answer:
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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