The-definition.com

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

  • Taylor rule
    Taylor rule means Economist John Taylor’s monetary policy rule that explains how the ...
  • Foreign Exchange (Forex)
    Foreign Exchange is the system or process of converting one national currency into another ...
  • Marginal lending facility
    Marginal lending facility is the European Central Bank’s standing lending facility in ...
  • Risk map
    Risk map used in risk management that shows grids detailing the potential frequency and ...
  • Regulatory forbearance
    Regulatory forbearance is the regulators’ refraining from exercising their right to ...