Banks For Cooperatives

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.



comments powered by Disqus
Hot Definitions
  1. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  2. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  3. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  4. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  5. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  6. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
Trading Center