Definition

Correspondent Bank

Correspondent Bank refers formal relationships which is established between an overseas bank and a domestic bank to facilitate international banking transactions.

It also refers to a bank that holds deposits for and provides services to another bank, located in another geographic area, on a reciprocal basis.

Share it:  Cite

More from this Section

  • Credit Derivatives
    Credit derivatives are financial contacts that are designed to protect a bank or other ...
  • Banker's acceptance
    A bankers acceptance is used for international trade as means of ensuring payments.It ...
  • Residential mortgage loans
    Residential mortgage loans is the credit to finance the purchase of homes of fund improvements ...
  • FAS #52
    FAS #52 is a regulation of the Financial Accounting Standards Board requiring U.S. companies ...
  • Credit Risk
    The risk that the promised CFs (Cash Flow) from the assets (loan of different types) & ...