How can I evaluate the creditworthiness of a bank that is being proposed as the confirming bank on a foreign letter of credit?

Answer: My friends in the banking industry tell me they recommend a two-step approach. First, gather information about the bank in question by visiting the Federal Deposit Insurance Corporation and checking this free searchable on-line database: http://www.fdic.gov/bank/statistical/index.html Also, verify the bank’s creditworthiness by looking at its rating on either Moody’s or Standard and Poors bond rating service – if possible.