correspondent bank

noun

1. a bank that performs services for one or more other banks.

Other Word Forms

• correspondent banking noun

Word History and Origins

Origin of correspondent bank¹

First recorded in 1960–65

Example Sentences

"We propose that the U.S. and the EU assign one authorised correspondent bank each for Rosselkhozbank to settle payments for grain and other agriculture products, as well as trade finance transactions, including bid and performance bonds," Zernin said, referring to deals to protect buyers and sellers.

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A correspondent bank acts as a middleman in the transfer of money from one bank to another.

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"Clearstream Banking's cash correspondent bank Rosbank is no longer available to receive income proceeds that may result from securities issued outside of Russia and denominated in roubles," Clearstream said.

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JPMorgan Chase has been processing the recent debt coupon payments as a correspondent bank.

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The correspondent bank processes the coupon payments from Russia, sending them to the payment agent to distribute to overseas bondholders.

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