Correspondent Bank


Correspondent Bank
A financial institution that provides services on behalf of another, equal or unequal, financial institution. A correspondent bank can conduct business transactions, accept deposits and gather documents on behalf of the other financial institution. Correspondent banks are more likely to be used to conduct business in foreign countries, and act as a domestic bank's agent abroad.

Correspondent banks are used by domestic banks in order to service transactions originating in foreign countries, and act as a domestic bank's agent abroad. This is done because the domestic bank may have limited access to foreign financial markets, and cannot service its client accounts without opening up a branch in another country.


Investment dictionary. . 2012.

Look at other dictionaries:

  • correspondent bank — A bank that serves as a depository and provides banking services for another bank. American Banker Glossary Bank that accepts deposits of, and performs services for, another bank (called a respondent bank); in most cases, the two banks are in… …   Financial and business terms

  • correspondent bank — correspondent banking. a bank that performs services for one or more other banks. [1960 65] * * * …   Universalium

  • correspondent bank — correspondent banking. a bank that performs services for one or more other banks. [1960 65] …   Useful english dictionary

  • correspondent bank — A bank in a foreign country that offers banking facilities to the customers of a bank in another country. These arrangements are usually the result of agreements, often reciprocal, between the two banks. The most frequent correspondent banking… …   Accounting dictionary

  • correspondent bank — A bank in a foreign country that offers banking facilities to the customers of a bank in another country. These arrangements are usually the result of agreements, often reciprocal, between the two banks. The most frequent correspondent banking… …   Big dictionary of business and management

  • correspondent bank — /ˌkɒrɪ spɒndənt bæŋk/ noun a bank which acts as an agent for a foreign bank …   Dictionary of banking and finance

  • Correspondent bank —   A foreign bank with whom you have an account relationship …   International financial encyclopaedia

  • Receiver's correspondent bank —   The bank on the receiving side servicing a transfer message …   International financial encyclopaedia

  • Sender's correspondent bank —   A bank on the sending side having an account …   International financial encyclopaedia

  • correspondent banking — Ⅰ. correspondent bank UK US noun [C] (also correspondent) BANKING ► a bank that does work for a bank in another place, usually in another country: »The use of a correspondent bank facilitates the transfer of funds abroad. correspondent banking… …   Financial and business terms