When you need risk hedging on Export L/Cs.
A confirming bank guarantees the payment on due date on top of the L/C issuing bank's payment guarantee. In case the exporter remain unsatisfied with the payment guarantee from the L/C issuing bank, L/C confirmation is effective to hedge exporter's future receivables.
Open confirmation is the case where an L/C issuing bank requests to add confirmation to the advising bank on the L/C.
Silent confirmation is the case where confirmation is added only upon a request by the exporter. There is no request to add confirmation on the L/C by the L/C issuing bank.
You can reserve the right to let us execute an L/C confirmation with the conditions agreed with us at the time of the commitment. Commitment fee is to be charged on a per annum basis.