Banker's acceptance

A short-term credit investment created by a non-financial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts from face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions. The New York Times Financial Glossary

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banker's acceptance (also bank bill) noun [C or U] BANKING, FINANCE
a bill of exchange (= document ordering payment of a particular amount) which has been accepted and signed by a bank that promises to pay the amount stated: »

The requested loan would be completely safe for the company, as it would be guaranteed by banker's acceptance.

Financial and business terms. 2012.

Look at other dictionaries:

  • banker's acceptance — ( BA) A short term financial instrument that is the unconditional obligation of the accepting bank. Banker s acceptances, or BAs, arise from transactions involving the import, export, transit, or storage of goods, including domestic as well as… …   Financial and business terms

  • banker's acceptance — n: a short term credit instrument issued by an importer s bank that guarantees payment of an exporter s invoice Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • banker's acceptance — n. a draft or bill of exchange drawn on a bank and accepted by it * * * …   Universalium

  • banker's acceptance — n. a draft or bill of exchange drawn on a bank and accepted by it …   English World dictionary

  • banker's acceptance — noun banking: a time draft drawn on and accepted by a bank • Syn: ↑acceptance • Hypernyms: ↑draft, ↑bill of exchange, ↑order of payment * * * noun Etymology: banker ( …   Useful english dictionary

  • banker's acceptance — noun A negotiable instrument or time draft drawn on and accepted by a bank, that upon acceptance becomes an obligation of the bank and is a marketable money market instrument. See Also: trade acceptance …   Wiktionary

  • Banker's Acceptance - BA — A short term credit investment created by a non financial firm and guaranteed by a bank. Acceptances are traded at a discount from face value on the secondary market. Banker s acceptances are very similar to T bills and are often used in money… …   Investment dictionary

  • banker’s acceptance — Fin see banker’s credit …   The ultimate business dictionary

  • banker's acceptance — A draft accepted by a bank usually for the purpose of financing a sale of goods to or by the bank s customer. A bill of exchange draft payable at maturity that is drawn by a creditor against his or her debtor. Banker s acceptances are short term… …   Black's law dictionary

  • banker's acceptance. — See bank acceptance. * * * …   Universalium

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