The-definition.com

Definition

Correspondent banking

Correspondent banking is a system of formal and informal relationships among large and small banks established to facilitate the exchange of certain services, such as the clearing of checks and the exchange of information between banks.

Share it:  Cite

More from this Section

  • Policy loan
    Policy loan is a cash value of a life insurance policy that can be borrowed by the policyholder ...
  • Policy instrument
    Policy instrument is a variable that is very responsive to the central bank’s tools ...
  • Non-bank Financial Institutions (NBFIs)
    In the global economy a new breed of financial institutions known in the banking arena ...
  • Credit option
    Credit option is an agreement between a bank or other lending institution and an option ...
  • Foreign Exchange Market
    The Foreign Exchange Market allows for the exchange of one currency for another. The foreign ...