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.

RELATED TERMS
  1. Agent Bank

    A bank that acts in some capacity on behalf of another bank. ...
  2. Syndicate

    A professional financial services group formed temporarily for ...
  3. Breaking The Syndicate

    The dissolution of a group of investment bankers that created ...
  4. Loan Syndication

    The process of involving several different lenders in providing ...
  5. Reallowance

    In securities underwriting, the fee that the underwriting group ...
  6. Paid Syndication

    Web syndication is the promotion or inclusion of content on a ...
Related Articles
  1. Investing

    What is a Syndicated Loan?

    A syndicated loan is one that involves a group of lenders (called the syndicate) who pool their lending resources to make a loan.
  2. Personal Finance

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  3. Investing

    What's a Correspondent Bank?

    A correspondent bank is a bank that acts on behalf of another bank, usually a foreign bank.
  4. Financial Advisor

    How Does The Eurobond Work?

    No, the Eurobond is NOT from Europe, and is different from EurobondS! Here’s how a Eurobond works, its benefits and its risks.
  5. Personal Finance

    What Does a Merchant Bank Do?

    A merchant bank is a financial institution that performs underwriting, loan services, financial advising and fund raising services to large corporations.
  6. Insights

    The Role of Commercial Banks in the Economy

    We interact with commercial banks daily to carry out simple financial tasks. That said, the function and creation of a commercial bank is anything but simple.
  7. Personal Finance

    What Does a Central Bank Do?

    A central bank oversees a nation’s monetary system.
  8. Insurance

    Is Insurance Underwriting Right For You?

    If you have excellent analytical skills and an eye for detail, this may be your calling.
  9. Investing

    What's the Role of an Investment Bank?

    Investment banks provide financial advice to businesses and governments and help them raise capital through the sale of stocks, bonds and other products.
RELATED FAQS
  1. How does an underwriter syndicate work together on an initial public offering (IPO)?

    Learn how underwriting syndicates work together when helping a company undertake an initial public offering, and learn about ... Read Answer >>
  2. Who generally structures a syndicated loan?

    Learn what syndicated loans are, including how they are structured and administrated, usual payment terms and costs associated ... Read Answer >>
  3. An underwriting syndicate for a new municipal offering of $10,000,000 has been formed ...

    The correct answer is b. A divided or “Western” syndicate is one in which the members stand alone. When a member of such ... Read Answer >>
  4. How does insurance underwriting differ from investment underwriting?

    Understand the difference between insurance underwriting and investment underwriting, including what types of risks an underwriter ... Read Answer >>
  5. What are some roles of an investment bank?

    Explore the world of investment banking and discover the various functions that investment bankers serve, such as handling ... Read Answer >>
  6. Do underwriters make guarantees to sell an entire IPO issue?

    Underwriters represent the group of representatives from an investment bank whose main responsibility is to complete the ... Read Answer >>
Trading Center