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What is the credit risk for the issuing bank in case of a transferrable Letter of Credit?

April 26, 2017accounts Bank Case checks credit Finance issuing risk Services transferrable

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What is the credit risk for the issuing bank in case of a transferrable Letter of Credit?

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None, all a letter of credit is saying that you are good for so much money is. The bank that gets the Letter of Credit will do thier own Credit check and make thier own assumption as to lend you money or not.