Charges & Pricing check0 / 1 answered · 0 correct
Check 1
Can a bank refuse to add confirmation even if the LC says MAY ADD?
Confirmation Pricing
Why confirmation can cost very little in one deal and be unavailable in another.
Credit risk
A confirming bank takes exposure to the issuing bank and often its country. Better perceived credit quality generally supports better pricing and availability.
Tenor
Longer exposure can cost more because the confirming bank is at risk for longer and consumes balance-sheet capacity.
Country and capital
Country risk, transfer risk, regulatory capital and internal limits can materially affect the quote.
Availability is not guaranteed
Even if Field 49 allows or requests confirmation, a bank is not necessarily obliged to add it unless it agrees.
Standards / source note: Bank charges and pricing are transaction-specific. Obtain the current tariff or quote from the banks involved; ICC rules do not set universal fee levels.
Remember this“May add” does not mean “confirmation already exists,” and a confirmation quote is a credit decision.
Finished this lesson?
Mark it complete. Your progress stays on this device.