0
A cover bank is often used for international transfers (especially those inolving a currency different to that of the local currency of the sending bank).
Only certain banks in any given country can act as a cover (or clearing) bank for transfers arriving in their currency. This allows for data to be easily collated about the amount of money entering or leaving a country at any point in time.
These banks can (but do not always) charge a handling fee. This fee can be charged back to the sender or taken out of the transfer amount (the sender can usually specify their preference) but the amount can vary and is dependant on the cover bank rather than the sending bank.
Depending on the volume of transactions being cleared that day the cover bank used by a sending bank might change e.g. Deutche Bank initiate a transfer in US Dollars and it's cleared by Citibank, the next day the same transaction could be made but due to increased volume of transaction requests, Bank of America act as the cover bank. This can make it difficult to to inform the sender if they will incur a fee, as the routing details are not final until the payment goes for processing.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Does homeowner insurance cover theft from your bank account?
In the United States, theft from one's banking account is covered by your bank and is backed as well as by the FDIC for member banks.
What happens if your bank honours a cheque for which you don't have sufficient funds in your checking account to cover?
Your bank will likely charge you a fee.
Run on bank?
A run on a bank is when a majority of the bank's customers go to the bank to with draw all their money and the bank does not have enough money to cover all the withdrawals. google Savings and Loan crisis 1980's for more detail
What is the loss payee clause for PNC Bank?
A loss payee clause is a statement. This is added onto your auto finance loan to cover interests with the bank.
A bank draft is guarenteed to be there by whom?
Bank drafts are cheques drawn by a bank usually on its own Head Office and may require two signatories such as bank managers. They are guaranteed to be there by your bank and by the customer doing the purchasing. Before a bank draft is guaranteed they make sure that you have enough money to cover it before they grant you a bank draft.
If you have 100000 in one bank and another 100000 in another and the 2nd bank buys out the first bank will the FDIC cover the full amount?
They will cover 100,000.
Does homeowner insurance cover theft from your bank account?
In the United States, theft from one's banking account is covered by your bank and is backed as well as by the FDIC for member banks.
Is it legal to cover the local bank in manure after a dispute with it?
100% not you will be expected to clean it up and pay compensation to the bank
What is an example sentence with the word bank draft?
A check is a type of bank draft. The Savings and Loan issued a bank draft to cover the amount. They sent a bank draft to the utility company.
What happens if your bank honours a cheque for which you don't have sufficient funds in your checking account to cover?
Your bank will likely charge you a fee.
What bills does bankruptcy cover?
Bankruptcy cover credit card bills. Bankruptcy can also cover outstanding debts from doctors, utility bills, and bank loans, as well.
Run on bank?
A run on a bank is when a majority of the bank's customers go to the bank to with draw all their money and the bank does not have enough money to cover all the withdrawals. google Savings and Loan crisis 1980's for more detail
Where is ABN amro bank in velachery?
Is Paul Van Berg working at your branch in Amsterdam and position does he cover at ABN AMRO Bank in Amsterdam?
What is the loss payee clause for PNC Bank?
A loss payee clause is a statement. This is added onto your auto finance loan to cover interests with the bank.
A bank draft is guarenteed to be there by whom?
Bank drafts are cheques drawn by a bank usually on its own Head Office and may require two signatories such as bank managers. They are guaranteed to be there by your bank and by the customer doing the purchasing. Before a bank draft is guaranteed they make sure that you have enough money to cover it before they grant you a bank draft.
What if sale of a house after a foreclosure doesn't cover the mortgage amount?
Then you still owe money to the bank.
What happens in the bank card process?
Once you receive your bank card and it is activated, use your card at a merchant of your choice. The bank is then contacted electronically and communicates whether or not there is sufficient funds to cover the transation. If there is, the purchase is carried out, and the merchant then submits the transaction to the bank for payment.
