Correspondent banking arrangement is a relationship between a small bank and a large bank in which the large bank provides a number of deposit, lending and other services.

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Correspondent banking is a relationship between two financial institutions, where one (usually a smaller, domestic bank) has access to a range of banking services provided by the other (usually a larger, international bank). These services may include deposit accounts, foreign exchange, wire transfers, and other financial products or services.

Correspondent Banking Arrangement Is a Relationship Between a Small Bank