DEFINITION of 'Prime Bank'
Term used to describe the top 50 banks (or thereabouts) in the world. Prime banks trade instruments such as world paper, International Monetary Fund bonds and Federal Reserve notes.
BREAKING DOWN 'Prime Bank'
Be extremely wary when you hear this term. It is often used by fraudsters looking to give some legitimacy to their cause.
Prime bank programs often claim investors' funds will be used to purchase and trade "prime bank" financial instruments for huge gains. Unfortunately, these "prime bank" instruments often never exist and people lose all of their money.