DEFINITION of 'Bank Endorsement'

An endorsement by a bank for a negotiable instrument, such as a banker's acceptance or time draft, that assures the counterparty that the bank will stand behind the obligations of the creator of the instrument.

BREAKING DOWN 'Bank Endorsement'

Bank endorsements are common in international trade, where the business parties are typically unknown to one another. Banks stand in the middle by assuring good funds to the recipient. A bank endorsement, in the case of a banker's acceptance, for example, is the equivalent of a guarantee.

RELATED TERMS
  1. Blank Endorsement

    A signature by the creator of an instrument, such as a check, ...
  2. Pay To Order

    A check or draft that must be paid via endorsement and delivery. ...
  3. Endorsement

    1. A legal term that refers to the signing of a document which ...
  4. Banker's Acceptance - BA

    A short-term debt instrument issued by a firm that is guaranteed ...
  5. Accommodation Endorser

    An entity or person who agrees to back the credit obligations ...
  6. Joint Endorsement

    The type of endorsement that is required on any type of joint ...
Related Articles
  1. Personal Finance

    Understanding Endorsements

    In financial terminology, endorsement has a couple of different meanings.
  2. Personal Finance

    Banker's Acceptance 101

    A banker's acceptance, a common way of financing international trade activity, provides a relatively safe, short-term vehicle for investors. An acceptance is a negotiable time draft that a bank ...
  3. Small Business

    Winning Celebrities And The Companies They Endorse

    These top celebs have brought in a ton of money for popular companies through endorsement deals.
  4. Personal Finance

    Personal Banker: Job Description & Average Salary

    Discover the job duties and typical salary of a personal banker, and identify the education and skill set needed to be successful in the field.
  5. Small Business

    Athletes Who Make More From Endorsements Than Sports

    When an athlete becomes a one-person brand, he or she can make more from endorsements than the sport he or she is famous for playing.
  6. Personal Finance

    What Do Investment Bankers Really Do?

    Investment bankers are essentially corporate financial advisors and can help companies manage the process of raising financing for their activities.
  7. Personal Finance

    Is a Career in Investment Banking Worth It?

    Discover why many finance professionals are wondering whether an investment banking career is worth it. Consider the challenges of this profession.
  8. Investing

    Understanding Financial Instruments

    Financial instrument is a general term used to describe a monetary asset.
  9. Investing

    Who is a Counterparty?

    The counterparty is the other party in a financial transaction.
  10. Small Business

    When Celebrity Endorsements Don't Work

    These celebrities got into hot water that ended up costing them millions in endorsement deals.
RELATED FAQS
  1. Why is marketing important to a company in the utilities sector?

    Find out what a banker's acceptance is, how it works, and why it should be considered a safe and liquid money market instrument. Read Answer >>
  2. How do I obtain a banker's acceptance?

    Find out how to obtain a banker's acceptance, why you should treat it like a short-term loan and when you would most likely ... Read Answer >>
  3. What is the Activities of Daily Living (ADL) hierarchy scale?

    Find out how a banker's acceptance is different than a post-dated check, even though both instruments represent a claim against ... Read Answer >>
  4. How can I cancel a bank draft that I have purchased?

    Learn about what a bank draft is and how it works, the circumstances under which a bank draft may be cancelled, and what ... Read Answer >>
  5. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ... Read Answer >>
Trading Center