can master and baby LC issuing bank the same bank?

[johnchan]

hi there
i have some basic understanding of how B/B LC works
may I ask, whether the issuing bank of the master and baby LC the same bank?
thank you

[picant]

Hi Pal,

the sequence is applicant-issuing bank-beneficiary A, then beneficiary A-issuing bank-beneficiary B.
Two complete different l/c for the some goods.
No hamper, but a source of probably dispute!
Other comments appreciated
Ciao

[johnchan]

thanks Picant
in that case, you mean its possible but not advised? becox dispute may arise.

[picant]

Hi Pal,

Assuming that applicant and beneficiary A, are both customers, you could have extra difficulties, however
you have a knowledge about your customers behaviour.
Ciao

[jinugu]

Hi yes it could be. A different scenario we commonly had was the applicant and beneficiary of the LC were both the customers of the bank. It was never a problem - it boils down to integrity. Ravi