DEFINITION of 'Bankers' Bank'

A special type of bank that is created by a group of banks. Bankers' banks exist for the sole purpose of servicing the charter banks that founded them. These banks do not service the public in any fashion, but are designed to provide community banks that would usually only be available to national and international banking conglomerates.

BREAKING DOWN 'Bankers' Bank'

Bankers' banks help community banks to effectively compete with larger banking entities with the services they provide. The first bank of this kind was created in 1975 in Minnesota. There are currently 22 of these entities nationwide that serve over 6,000 community banks in 48 states.

RELATED TERMS
  1. Investment Banker

    Someone working at an institution raising capital for companies, ...
  2. National Bank

    In the United States, a commercial bank chartered by the comptroller ...
  3. Bank

    A financial institution licensed as a receiver of deposits. There ...
  4. Investment Banking

    A specific division of banking related to the creation of capital ...
  5. Universal Banking

    A banking system in which banks provide a wide variety of financial ...
  6. Bridge Bank

    A bank authorized to hold the assets and liabilities of another ...
Related Articles
  1. Insights

    The World's Top 10 Banks

    Learn more about the world's largest banks and how more financial power shifts eastward as China is home to four of the world's largest banks.
  2. Personal Finance

    Banking Has Changed: What Does It Mean For Consumers?

    Banks have long been leading spenders on technological innovations. Learn the key changes in the banking industry and what institution is right for you.
  3. Personal Finance

    Personal Banker: Job Description & Average Salary

    Discover the job duties and typical salary of a personal banker, and identify the education and skill set needed to be successful in the field.
  4. Personal Finance

    Career Advice: Investment Banking Vs. Commercial Banking

    Read an in-depth review of the differences between a career in investment banking and a career in commercial banking, including how to decide between them.
  5. Personal Finance

    Career Advice: Investment Banking Vs. Private Banking

    Examine the two potential career options of investment banking and private banking, with an eye toward choosing the most suitable career.
  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. Insights

    A Brief History of U.S. Banking Regulation

    From the establishment of the First Bank of the United States to Dodd-Frank, American banking regulation has followed the path of a swinging pendulum.
  8. Personal Finance

    How Will Bank Regulation Affect British Banks?

    We look at the proposed changes to Britain's banking system, and see whether it will be able to stay competitive.
RELATED FAQS
  1. What economic indicators are important to consider when investing in the banking ...

    Find out which economic indicators are most useful for investors in the banking sector, especially those influenced by central ... Read Answer >>
  2. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  3. What are the main reasons an investor should consider an allocation to the banking ...

    Learn about investment opportunities in the commercial and investment banking industry. Find out why many investors choose ... Read Answer >>
  4. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ... Read Answer >>
  5. What's the difference between investment banks and commercial banks?

    Understand the principal differences between investment banks and commercial banks, and the areas of banking services that ... Read Answer >>
  6. What proportion of the global economy is comprised of banks?

    Read about the size and scope of the global banking sector, its importance and why it should continue to form a sizable portion ... Read Answer >>
Trading Center