Confirming Bank

In a letter of credit transaction, the confirming bank, also known as the confirmer, is a bank that, at the request of the issuing bank, agrees to perform the principal duties of the issuing bank. It receives the beneficiary's presentation under the letter of credit, it determines whether the presentation complies with the terms of the letter of credit, and if it is a complying presentation the confirming bank makes payment to the beneficiary. The confirming bank is usually located in the beneficiary's country, is known to the beneficiary, and is usually nominated by the issuing bank as a convenience to the beneficiary.

See Practice Note, Commercial Letters of Credit: Basic Structure of a Commercial Letter of Credit.