Bankers' Bank

AAA

DEFINITION of 'Bankers' Bank'

A special type of bank that is created by a group of banks. Bankers' banks exist for the sole purpose of servicing the charter banks that founded them. These banks do not service the public in any fashion, but are designed to provide community banks that would usually only be available to national and international banking conglomerates.

INVESTOPEDIA EXPLAINS 'Bankers' Bank'

Bankers' banks help community banks to effectively compete with larger banking entities with the services they provide. The first bank of this kind was created in 1975 in Minnesota. There are currently 22 of these entities nationwide that serve over 6,000 community banks in 48 states.

RELATED TERMS
  1. Bank Reserve

    Bank reserves are the currency deposits which are not lent out ...
  2. Group Banking

    A plan offered by banks that generally provides incentives for ...
  3. Bank Capital

    The difference between the value of a bank's assets and its liabilities. ...
  4. Independent Community Bankers Of ...

    A domestic trade organization that represents about 5,000 small ...
  5. Investment Banking

    A specific division of banking related to the creation of capital ...
  6. Lead Bank

    A bank that oversees the arrangement of a loan syndication. The ...
Related Articles
  1. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  2. The 5 Most Influential Bankers Of All ...
    Retirement

    The 5 Most Influential Bankers Of All ...

  3. How Bank of America Holds 1/8 of All ...
    Stock Analysis

    How Bank of America Holds 1/8 of All ...

  4. JPMorgan Chase: Too Big (And Profitable) ...
    Stock Analysis

    JPMorgan Chase: Too Big (And Profitable) ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center