correspondent bank - Investment & Finance Definition
A bank that takes deposits for and performs banking services for other depository institutions in exchange for a fee. Correspondent banks typically provide banking services when the others banks, often foreign banks, aren’t able to offer the services or find that it is more cost effective to outsource this need. Commercial banks typically provide correspondent banking services.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.