Banks For Cooperatives

AAA

DEFINITION of 'Banks For Cooperatives'

Established by the Farm Credit Act of 1933, these regional, privately-owned and government-sponsored banks make loans to farmer-owned marketing, supply and service cooperatives, and rural utilities. The loans are financed primarily by the sale of debt securities issued by the Federal Farm Credit Bank. Banks for cooperatives are part of the Federal Farm Credit System and are subject to regulation by the Farm Credit Administration.

INVESTOPEDIA EXPLAINS 'Banks For Cooperatives'

The Federal Farm Credit System is a nationwide cooperative system of banks and associations providing credit to farmers, agricultural concerns and related businesses. This cooperative system contains the Bank for Cooperatives, Farm Credit Banks and the Federal Farm Credit Banks Funding Corp. In January 2006, the U.S. government signed a law stating that every farm credit district must have a bank for cooperatives.

RELATED TERMS
  1. Money Center Banks

    A money center bank is similar in structure to a common bank, ...
  2. Bank

    A financial institution licensed as a receiver of deposits. There ...
  3. Federal Farm Credit System - FFCS

    In the United States, a network of federally chartered financial ...
  4. Agricultural Credit

    Any of several credit vehicles used to finance agricultural transactions, ...
  5. Benchmark Crude Oil

    Benchmark crude oil is crude oil that serves as a pricing reference, ...
  6. Christmas tree (oil and gas)

    A vertical assembly of mechanical elements used in oil exploration ...
Related Articles
  1. Economic Indicators That Do-It-Yourself ...
    Investing Basics

    Economic Indicators That Do-It-Yourself ...

  2. Trading The Non-Farm Payroll Report
    Forex Education

    Trading The Non-Farm Payroll Report

  3. Agency Bonds: Limited Risk And Higher ...
    Taxes

    Agency Bonds: Limited Risk And Higher ...

  4. Understanding Benchmark Oils: Brent ...
    Investing Basics

    Understanding Benchmark Oils: Brent ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. 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 ...
Trading Center