Correspondent bank (usually in the exporter's country) of an issuing bank (usually in the importer's country) that receives a letter of credit (L/C) from the issuing bank for authenticating it and informing ('advising') the exporter (the L/C's beneficiary) that a L/C has been opened by the importer in the exporter's favor.
The advising bank usually
also takes on other roles in the transaction, such as
1. C the letter of
credit (playing the role
of the 'confirming bank'),
2. Accepting a bill of
exchange by endorsing it (becoming the 'accepting bank')
and/or,
3. Paying the exporter on presentation of
documents (becoming the 'paying bank' or 'negotiating bank').