From a bank's viewpoint, issuing a letter of credit is analogous to making a loan as far as risk is concerned.

Name: From a bank's viewpoint, issuing a letter of credit is analogous to making a loan as far as risk is concerned.
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Issuing a letter of credit involves the bank guaranteeing payment to the beneficiary of the letter, which is similar to a loan where the bank is taking on the risk of the borrower being unable to repay.

From a Bank's Viewpoint, Issuing a Letter of Credit Is