Definition of Correspondent bank:
A bank that handles the local leg of a business transaction and the associated documents, as an agent of a bank in another city or country. Also called agent bank.
Correspondent banks are third-party banks. They act as middlemen between different financial institutions. As such, they provide Treasury services between sending and receiving banks, especially those in different countries—such as:.
The term correspondent bank refers to a financial institution that provides services to another one—usually in another country. It acts as an intermediary or agent, facilitating wire transfers, conducting business transactions, accepting deposits, and gathering documents on behalf of another bank. Correspondent banks are most likely to be used by domestic banks to service transactions that either originate or are completed in foreign countries. Domestic banks generally use correspondent banks to gain access to foreign financial markets and to serve international clients without having to open branches abroad.
How to use Correspondent bank in a sentence?
- The accounts held between correspondent banks and the banks to which they are providing services are referred to as Nostro and Vostro accounts.
- A correspondent bank is an authorized financial institution that provides services on behalf of another financial institution. .
- The correspondent bank was extremely quick to respond, the bank manager I spoke to was more than willing to help.
- Domestic banks can serve their international clients and gain access to foreign financial markets by using correspondent banks rather than setting up branches overseas.
- You may have to get involved with a correspondent bank and you should try to do right by them so that you can do business again in the future.
- Correspondent bank services may include funds transfer, settlement, check clearing, and wire transfers.
- While Dinero Bank had its headquarters in the heart of Mexico City, it did have a correspondent bank in Tijuana so that it could provide personalized service and data analysis in that part of the country.
Meaning of Correspondent bank & Correspondent bank Definition