Glossary of terms commonly used in the Wallet

correspondent bank

how to read
How to read in Japanese: correspondent bank

When money is transferred between banks within the same country, usually only the balance of the account at the country’s central bank is written down, not the actual cash transport.

However, when remitting money to a foreign country (outward remittance), banks that have not opened a deposit account at the country’s central bank cannot use this method. Therefore, a correspondent agreement is concluded with a bank that has a deposit account at the central bank of that country, and that bank is called a correspondent bank. A correspondent contract is a contract that serves as a relay for overseas remittances.

For example, when Bank B in Country A sends money to Bank D in Country C, Bank B opens an account with Bank E, which has a deposit account with the central bank in Country C, in advance and enters into a correspondent account agreement. Then, when Bank B sends money to Bank D, it can request Bank E to send the money through the central bank in Country C.

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