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.

BREAKING DOWN '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.

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