(redirected from Correspondent bank)
Also found in: Dictionary, Thesaurus, Medical, Financial, Encyclopedia.


n. 1) an officially chartered institution empowered to receive deposits, make loans, and provide checking and savings account services, all at a profit. In the United States banks must be organized under strict requirements by either the Federal or a state government. Banks receive funds for loans from the Federal Reserve System provided they meet safe standards of operation and have sufficient financial reserves. Bank accounts are insured up to $100,000 per account by the Federal Deposit Insurance Corporation. Most banks are so-called "commercial" banks with broad powers. In the east and midwest there are some "savings" banks which are basically mutual banks owned by the depositors, concentrate on savings accounts, and place their funds in such safe investments as government bonds. Savings and Loan Associations have been allowed to perform some banking services under so-called deregulation in 1981, but are not full-service commercial banks and lack strict regulation. Mortgage loan brokers, and thrift institutions (often industrial loan companies) are not banks and do not have insurance and governmental control. Severe losses to customers of these institutions have occurred in times of economic contraction or due to insider profiteering or outright fraud. Credit Unions are not banks, but are fairly safe since they are operated by the members of the industry, union or profession of the depositors and borrowers. 2) a group of judges sitting together as an appeals court, referred to as "in bank" or "en banc."

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

BANK, com. law. 1. A place for the deposit of money. 2. An institution, generally incorporated, authorized to receive deposits of money, to lend money, and to issue promissory notes, usually known by the name of bank notes. 3. Banks are said to be of three kinds, viz : of deposit, of discount, and of circulation; they generally perform all these operations. Vide Metc. & Perk. Dig. Banks and Banking.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
"Despite the efforts to reduce the level of dollarization in the domestic banking system, Angola will continue to rely heavily on correspondent banks for international transactions."
Marine Midland Bank-N.Y., 39 N.Y.2d 391, 348 N.E.2d 581, 384 N.Y.S.2d 124 (1976), stands for the proposition that the use of a New York correspondent bank account, standing alone, may be considered a 'transaction of business' under the long-arm statute if the defendant's use of the correspondent account was purposeful....
In cases where a local correspondent bank of good standing holds the account of another bank it will have undertaken a due diligence check on the other bank to insure that it is properly constituted and supervised.
In many cases, correspondent banks are also challenged by guidelines that are unclear or inconsistently applied.
Summary: Lebanon's country risk and the presence of Hezbollah prompts U.S and international correspondent banks to carefully verify most financial transactions from the country, the secretary-general of the Union of Arab Banks said Wednesday.
Opus Bank's correspondent bank is in addition to Opus' retail bank, commercial bank, and merchant bank.
The fee will however vary with correspondent bank and will be based on any fees charged by the correspondent bank in the country where the payment is received, the bank said.
correspondent bank to close the account of a local financial institution, Jebeyli said, warning that the decision of one correspondent bank could prompt a domino effect.
The correspondent bank is then empowered to provide credit, deposit, collection, clearing and payment services to customers in the main bank's name.
Industry KYC utilities can also help by acting as a platform of up-to-date information for correspondent banks. Swift's KYC Registry, for example, has more than 5,000 financial institutions on its books and enables banks to provide validated information, making it cheaper and easier for their correspondents to access the information they need.
The BSP noted limitations to remittances by data source, however, as a practice of some remittance centers abroad is to course remittances through correspondent banks. Most of these correspondent banks are in the US.