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. Endorser

    A person who is authorized to sign a negotiable security in order ...
  3. Endorsement

    1. A legal term that refers to the signing of a document which ...
  4. Advisory Endorsement

    Adjustments to the provisions used to create an insurance policy, ...
  5. Joint Endorsement

    The type of endorsement that is required on any type of joint ...
  6. Treasurer's Draft

    A type of bank draft that is payable through a designated bank. ...
Related Articles
  1. 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.
  2. Personal Finance

    What Do Investment Bankers Really Do?

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

    Private Banker: Job Description & Average Salary

    Discover what a career in private banking entails, including a job description, education and training, necessary skills and licensing, and salary.
  4. Personal Finance

    Career Advice: Investment Banking vs. Commercial Banking

    Read an in-depth review of the differences between a career in investment banking and a career in commercial banking, including how to decide between them.
  5. 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.
  6. Small Business

    When Celebrity Endorsements Don't Work

    These celebrities got into hot water that ended up costing them millions in endorsement deals.
  7. Personal Finance

    Private Banker: Career Path & Qualifications

    Discover what kind of work private bankers do, and learn more about how you can develop the experience and qualifications required to work in the field.
  8. Financial Advisor

    Why Investment Bankers Need Financial Advisors

    Even the most successful investment bankers need financial advisors. Here's why.
  9. Personal Finance

    What Does an Investment Banker Do?

    An investment banker works for a financial institution that helps companies, governments and agencies raise money by issuing securities.
RELATED FAQS
  1. How can I look up average banker's acceptance yields?

    Discover what a banker's acceptance note is, how it is commonly used, and where investors can find information on available ... Read Answer >>
  2. What's the biggest sports endorsement deal ever signed?

    The largest athlete endorsement deal exceeds $180 million over the course of 13 years and belongs to famous Chicago Bull ... Read Answer >>
  3. What is the difference between a bank guarantee and a bond?

    Understand the differences between a bank guarantee and a bond, including which one is a debt instrument. Read Answer >>
Trading Center