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Correspondent Bank
Practical Law Glossary Item 1-505-6468 (Approx. 2 pages)
Glossary
Correspondent Bank
A bank that provides services on behalf of another financial institution. Correspondent banks are commonly used by financial institutions to conduct business in other jurisdictions (out of state or out of country), especially where the financial institution does not have its own branch network or does not offer the type of services provided by the correspondent bank. Corresponding banking services often include:
- Conducting business transactions (such as international funds transfers, check clearing, and foreign exchange services).
- Accepting deposits.
- Gathering documents on behalf of the financial institution.
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