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Definition of 'Correspondent Bank'
A financial institution that provides services on behalf of another, equal or unequal, financial institution. A correspondent bank can conduct business transactions, accept deposits and gather documents on behalf of the other financial institution. Correspondent banks are more likely to be used to conduct business in foreign countries, and act as a domestic bank's agent abroad.
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Investopedia explains 'Correspondent Bank'
Correspondent banks are used by domestic banks in order to service transactions originating in foreign countries, and act as a domestic bank's agent abroad. This is done because the domestic bank may have limited access to foreign financial markets, and cannot service its client accounts without opening up a branch in another country.
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Search results for 'Correspondent Bank'
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http://www.investopedia.com/articles/economics/08/nps.asp
... code is similar to the ABA RTN number as a means to identify the bank initiating
the transfer as well as the correspondent banks with which the bank has pre ...
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