A collecting bank, in the context of the supply chain, refers to a financial institution that acts as an intermediary to facilitate the collection of payments on behalf of exporters or sellers. When conducting international trade, the collecting bank plays a crucial role by receiving payments from the importer's bank and ensuring the secure transfer of funds to the exporter's account. This helps mitigate the risk of non-payment or fraudulent transactions, providing a reliable mechanism for settling trade transactions and ensuring timely and accurate payment collection in the supply chain.