What Is an Agency Bank?

The correspondent banking system, also known as the correspondent banking system, refers to a system in which banks sign an agency agreement with each other and entrust the other bank to handle the designated business.

Correspondent banking system

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The correspondent banking system, also known as the correspondent banking system, refers to a system in which banks sign an agency agreement with each other and entrust the other bank to handle the designated business.
Chinese name
Correspondent banking system
nickname
Current banking system
Meaning
Refers to the agency agreement signed between the banks
Features
Bank agency relationship is mutual
The correspondent banking system, also known as the correspondent banking system, refers to a system in which banks sign an agency agreement with each other and entrust the other bank to handle the designated business. Generally speaking, the bank agency relationship is mutual, so they are each other's correspondent bank. Internationally, agency relations are very common. As for the domestic, the most developed agency system is the United States, which implements the unit banking system. It can be said that it is this agency system that resolves the contradiction of establishing branches. Even in countries with a head office system, there is an agency relationship between banks.

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