a confirming bank refers to a financial institution that adds its guarantee to a letter of credit issued by the buyer's bank (the issuing bank). When the seller (beneficiary) receives a letter of credit with the confirmation of a bank, it provides an additional layer of security and assurance of payment. The confirming bank undertakes the responsibility of making payment to the seller upon compliance with the terms and conditions of the letter of credit, mitigating the payment risks associated with international trade transactions.