What is a 'Lead Bank'
A lead bank is a bank that oversees the arrangement of a loan syndication. The lead bank is paid an additional fee for this service, which involves recruiting the members and negotiating the financing terms. In the eurobond market, the lead bank acts in an agent capacity for an underwriting syndicate.
BREAKING DOWN 'Lead Bank'
"Lead bank" can also refer to an investment bank that manages the process of underwriting a security. In this sense, the bank can also be referred to as a lead manager or managing underwriter.
A third meaning of this term is simply the primary bank of an organization that uses several banks for several different purposes.