Okuzeka
Finance & Banking vocabulary · Trade Finance

Reimbursement bank

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, reimbursement bank means: A bank authorized to reimburse a claiming bank under an interbank arrangement for a documentary credit.

In Turkish: rambursman bankası

How it is used

Also called reimbursing bank; its reimbursement role differs from examining the exporter's trade documents.

Example sentences

  1. The issuing bank sent its authorization to the reimbursement bank.

    The authorization supports payment between the participating banks.

  2. The claiming bank requested funds from the reimbursement bank.

    The payment channel operates between banks within the credit arrangement.

Common collocations

  • reimbursement bank authorization
  • reimbursement bank claim
  • letter of creditA bank's written promise to pay the seller in an international sale, provided that the seller presents the required documents, such as the bill of lading and invoice.
  • correspondent bankA bank that provides services, such as making payments or handling trade documents, for another bank in a country or currency where that bank has no presence.

More terms: Trade Finance

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This page explains English vocabulary for learners. It is not financial advice.