correspondent institution

Definition of "correspondent institution"
  1. An entity that handles the settlement of cash items for other institutions using its Federal Reserve Bank account
How to use "correspondent institution" in a sentence
  1. The local bank partnered with a correspondent institution to handle large-scale transactions.
  2. Due to the efficient services, the credit union chose to work with a correspondent institution.
  3. The financial firm acts as a correspondent institution, facilitating settlements for various banks.

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