BANKING AFFAIRS

Detailed explanation-1: -Key Takeaways A correspondent bank is an authorized financial institution that provides services on behalf of another financial institution. Correspondent bank services may include funds transfer, settlement, check clearing, and wire transfers.

Detailed explanation-2: -A correspondent banking relationship involves one financial institution (the correspondent) providing banking services to another financial institution (the respondent), where the financial institutions carry on activities or business at or through permanent establishments in different countries.

Detailed explanation-3: -There are many differences between correspondent banks and intermediary banks, but these two types of banks are mainly distinguished by the number of currencies that they handle. Correspondent banks typically work with many currencies, whereas intermediary banks usually handle just one local or domestic currency.