Money center banks

Money center banks,

Definition of Money center banks:

  1. A money center bank is similar in structure to a standard bank; however, it's borrowing, and lending activities are with governments, large corporations, and regular banks. These types of financial institutions (or designated branches of these institutions) generally do not borrow from or lend to consumers.

  2. Banks located in economic hubs (in large cities such as Los Angeles, New York, London, and Hong Kong) and earn revenue from transactions between themselves and governments, big businesses, and other banks, rather than the individual consumer. Regular banks usually take their cues from these banks, especially as they regard interest rates and other business practices. Also called money market center banks.

  3. Money center banks are usually located in major economic centers such as London, Hong Kong, Tokyo, and New York. With their large balance sheets, these banks are involved in national, and international financial systems.

Meaning of Money center banks & Money center banks Definition