Correspondent Bank

A correspondent bank provides banking services on behalf of another bank, often in a different country. It enables international payments when the sending and receiving banks do not have a direct relationship.

Correspondent banks hold nostro accounts and vostro accounts to settle cross-border transactions. Fees and processing times can vary based on the number of intermediaries involved.

Related Terms

Intermediary Bank

An intermediary bank is a bank that sits between the sending and receiving banks to route an interna...

Nostro Account

A nostro account is an account a bank holds in a foreign currency at another bank. It is used to set...

Vostro Account

A vostro account is an account a foreign bank holds with a local bank, usually in the local currency...

SWIFT

Society for Worldwide Interbank Financial Telecommunication

SWIFT is a global messaging network that financial institutions use to securely transmit information...

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