Presenting Bank

Presenting Bank

A presenting bank is a financial institution that submits documents to the drawee on behalf of the beneficiary in a documentary collection or letter of credit transaction.

Documentary collections involve parties like beneficiaries, drawees, remitting banks, and presenting banks. The presenting bank handles documentation, ensuring compliance with the letter of credit terms. In a letter of credit transaction, the bank transfers documents such as bills of lading, invoices, and insurance documents.

For instance, in an international trade, the presenting bank submits the bill of lading, commercial invoice, and insurance certificate to the drawee. The drawee, usually the buyer, reviews and pays according to the credit terms. The presenting bank facilitates this process, ensuring smooth transactions.