Mr Old Man Q&A WHETHER THE MASTER LC SHOULD BE CONFIRMED By Mr Old Man Posted on September 6, 2023 1 min read 0 0 1,075 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Oldman, While issuing a back-to-back LC, should the master LC be confirmed by the bank? What are the advantages of confirming the master LC? Regards Rohini — ANSWER Hi, The master LC and the back-to-back LC are separate. So, the master LC is regarded as an independent LC. If it is issued by a weak bank or a bank in high-risk countries (financial crisis, political crisis, war risk), the beneficiary (the trader) should insist an LC confirmed by a world class bank to guarantee the payment. The bank of the trader would rather accept to issue the back-to-back LC based on a confirmed master LC than an LC without confirmation. Best regards, Mr. Old Man