- 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 different cities. Bloomberg Financial Dictionary
* * *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 noun [U]► »
These principles apply in all correspondent banking arrangements.Ⅱ.correspondent banking UK US noun [U] BANKING► the act of a small foreign bank using a larger local bank to do its business in places where it has no office: »
An offshore affiliate of Argentina's Banco Republica had a 10-year correspondent banking relationship with Citibank in New York.»
Correspondent banking is the most common means of making international payments.
Financial and business terms. 2012.