Correspondent Bank

Summary of Correspondent Bank

A bank that acts as the representative of another bank in a given transaction. As a rule, correspondents have sums on deposit with each other for the purpose of settling the transactions of the other bank.

(Main Author: William J. Miller)

Correspondent Bank in International Trade

Meaning of Correspondent Bank, according to the Dictionary of International Trade (Global Negotiator): A bank that performs certain operations on behalf of another bank, usually in a different country. Correspondent banks hold deposits with each other, and accept and collect items on a reciprocal basis. It is through networks of correspondent banks that trade banks are able to service and support international business transactions.

Correspondent Bank

Resources

See Also

• Correspondent