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.
In simplest terms, a surety bond is a three-party guarantee. What exactly is being guaranteed will vary by bond type. Some bonds guarantee compliance with a government license, whereas others can guarantee performance of a construction contract. Read ahead for a more in depth explanation.