Definition

1. Noun:
   • A bank that acts as an agent for a foreign bank: An "agent bank" is a financial institution that provides services on behalf of a bank located in another country. These services can include clearing checks, handling payments, or facilitating international transactions.
   • A bank named by a lending syndicate of several banks to protect their interests: In a syndicated loan (where multiple banks lend money together), the "agent bank" is the bank appointed to administer the loan. It acts as the main point of contact between the borrower and all the other lending banks in the syndicate.

Usage Examples

• Noun:
  • Our bank in London uses an agent bank in New York to process all its US dollar transactions.
  • The consortium of lenders appointed Citibank as the agent bank to manage the disbursement and collection of the $500 million loan.

Advanced Usage

• "Lead agent bank" or "syndicate agent": These terms are often used interchangeably with "agent bank" in the context of syndicated lending to emphasize its leading administrative role.
  • The lead agent bank is responsible for coordinating all communications between the borrower and the syndicate members.

Variants and Related Words

• Correspondent Bank: This is a closely related term. While all agent banks perform correspondent banking services, a "correspondent bank" relationship is typically a reciprocal service agreement between two banks, whereas an "agent bank" often has a more formal, appointed role, especially in syndications.
• Facility Agent: Another term for the agent bank in a syndicated loan agreement, specifically managing the credit facility.

Synonyms

• Administrative agent (in syndicated lending).
• Correspondent bank (for cross-border services).

Related Phrases

• To act as an agent bank: To perform the duties of an agent bank.
  • Several large financial institutions compete to act as the agent bank for major international syndications.

Noun

1. a bank that acts as an agent for a foreign bank
2. a bank named by a lending syndicate of several banks to protect their interests