When a beneficiary receives a documentary credit, they may have concerns about the issuing bank's credibility or the buyer's country's economic stability. In such cases, they have the option to request their local bank to confirm the credit. This can also be included in the credit's terms and conditions by the issuing bank. If the local bank agrees to confirm the credit, it provides its own separate commitment, authorized by the issuing bank, to honor valid drawings under the credit. This adds an additional layer of support from the local bank, in addition to that of the issuing bank.
