Associate Bank

AAA

DEFINITION of 'Associate Bank'

A bank that is affiliated, usually through membership, in a regional or national organization, such as a clearing house, an electronic payments network or a bank card network, such as Visa or MasterCard. There are usually different classes of membership in regional and national associations, which correlate with shares owned or fees paid.

INVESTOPEDIA EXPLAINS 'Associate Bank'

The term "associate bank" is also used to describe banks that accommodate each other's customers across geographic or national lines when each bank's geographic reach is limited. For example, a small state bank in the United States may have an associate relationship with a bank in London, in order to accommodate a customer traveling there.

RELATED TERMS
  1. Clearing

    The procedure by which an organization acts as an intermediary ...
  2. Automated Clearing House - ACH

    An electronic funds-transfer system run by the National Automated ...
  3. National Automated Clearinghouse ...

    A non-profit membership association charged with overseeing the ...
  4. Bank Card Association

    An organization owned by financial institutions that licenses ...
  5. Electronic Payments Network - EPN

    An electronic automated clearing house (ACH) that serves as the ...
  6. LIBOR Scandal

    A scandal in which financial institutions were accused of fixing ...
Related Articles
  1. Inside National Payment Systems
    Economics

    Inside National Payment Systems

  2. How Credit Cards Built A Plastic Empire
    Credit & Loans

    How Credit Cards Built A Plastic Empire

  3. What does CHIPS UID mean?
    Investing

    What does CHIPS UID mean?

  4. Tired Of Banks? Try A Credit Union
    Retirement

    Tired Of Banks? Try A Credit Union

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center