Filter by Categories
Accounting
Banking

Banking




Respondent Bank


bank (the principal) which has an account with another bank (the agent, or the correspondent bank) that allows it to make payments for its own account and on behalf of its clients. Also, the respondent bank can collect deposits through its correspondent bank, and can avail of banking services that can’t usually be obtained without the intervention of a correspondent bank. Typically, respondent banks have limited access to financial markets or overseas geographic regions, and therefore seek the services of big banks to conduct specific transactions. In most cases, the two banks are located in different cities or countries. Correspondent relationships don’t include transactions between banks as principals (i.e., in the wholesale market).



ABC
Banking is an integral part of the modern financial system and plays an important role in an economy. It basically involves the so-called intermediation (e.g., ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*