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. Federal Farm Credit System - FFCS

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

    Any of several credit vehicles used to finance agricultural transactions, ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Debit Card

    An electronic card issued by a bank which allows bank clients ...
  6. Benchmark Crude Oil

    Benchmark crude oil is crude oil that serves as a pricing reference, ...
Related Articles
  1. Investing Basics

    Economic Indicators That Do-It-Yourself Investors Should Know

    Understanding these investing tools will put the market in your hands.
  2. Forex Education

    Trading The Non-Farm Payroll Report

    Discover how to trade the NFP report without getting knocked out by the irrational volatility it can create.
  3. Taxes

    Agency Bonds: Limited Risk And Higher Return

    Discover these safe alternatives to Treasury bonds.
  4. Personal Finance

    4 Tips To Cut Your Monthly Bank Fees

    We asked banking professions to share their biggest tips for tackling bank fees, and hopefully save more even before spring hits.
  5. Mutual Funds & ETFs

    Want to Go Long Natural Gas? Eye the UGAZ ETN

    Is UGAZ the best way to play natural gas? Maybe not.
  6. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  7. Entrepreneurship

    JPMorgan vs. Goldman Sachs: A Tale of Two Stocks

    The performance of JPMorgan and Goldman has been impressive, but one has a slight edge.
  8. Chart Advisor

    Watch Out Below For Falling Lumber Prices

    A drop in the spot price of lumber shows that the bears have pushed the price below two significant levels of support.
  9. Economics

    Bulk Shipping Companies Struggle As Markets Soften

    The "soft" dry bulk shipping market that confronts shipping companies is a result of lower demand from China, and an excessive amount of bulk ships.
  10. Economics

    Why Low Oil Prices Benefit Saudi Arabia?

    Saudi Arabia's large currency reserves and dominant position in the oil market allows it to manipulate the current scenario to its favor and provides political leverage against rival countries. ...

You May Also Like

Hot Definitions
  1. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  2. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  3. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  5. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
Trading Center