1.1.8.7 Banker’s Acceptances (BAs)

Banker’s acceptances (BAs) are bills of exchange that are issued and guaranteed by a bank for payment within one to six months. The funds raised through their sale provide manufacturers and exporters with operating capital between the time of production or exporting and the time of payment y purchasers. I affect, the bank ‘accepts’ evidence of the value of goods being either manufactured or exported. For that evidence, it issues its ‘acceptance’ in the form of a certificate, which can then be bought and sold as a security.