Term:
Banker's acceptances (B/A)
Definition:
A negotiable order to pay a specified amount of money on a future date, drawn on and guaranteed by a bank. These drafts are usually drawn for international trade finance purposes as an order to pay an exporter a stated sum on a specific future date for goods received. The act of a bank stamping the word “accepted” on the draft creates a banker’s acceptance.
Domain:
Finance
Source:
IMF, 2003, External Debt Statistics: Guide for Compilers and Users – Appendix 1. Special financial instruments and transactions: classifications, IMF, Washington DC