Definitions for "Advising Bank"
The bank to which the Issuing Bank sends the Letter of Credit, with instructions to notify the Exporter (Beneficiary).
In relation to Letters of Credit: it is the bank that advises/passes the Letter of Credit to the Beneficiary, who is normally the seller/exporter.
The bank which notifies the seller (exporter) that a letter of credit has been opened by the buyer (importer) for the specified trade transaction. The term is used in trade finance. (Please note: advising banks do not guarantee payment while a confirming bank does. A bank can be both the confirming and advising bank, in which case payment would be guaranteed. However, these roles can also be handled by two different banks.)