Definitions for "Banker's Acceptance"
Time drafts drawn on and accepted by banks for payment on their maturity date. They are widely accepted as money market instruments. In trade financing, drafts that are authorized under a letter of credit in effect become a banker's acceptance when the bank places its acceptance on the draft, (i.e., acceptance is called aval).
short-term credit investment which is created by a non-financial firm and whose payment is guaranteed by a bank. Often used in importing and exporting, and as a money market fund investment.
Short-term credit instruments most commonly used by persons or firms engaged in international trade.
An agreement by a bank to pay the bills for one of its customers when the bills are presented
Keywords:  obligation, short, term
a short term obligation of a bank