Monetary Policy Report Press Release: December 2017 BOX Monetary Policy Report Implications of the electronics technology life-cycle and the rise of the Internet of Things for Asiaâs exports Developments in the unrated bond market and implications for financial stability
What is the difference between a surety bond and a bank guarantee? Surety bonds are typically conditional whereas bank guarantees are on demand. Only the performance risk lies with the surety, where the bank has the financial risk on the construction project.
Different Purposes. While surety bonds and bank guarantees both make entering contracts safer for the parties involved, their roles are different. A bank guarantee is similar to an escrow account in that the buyer and seller agree to act and exchange funds using the bank. A business that wants to obtain a letter of credit must have collateral to satisfy the bank.