1. Bank named by members of a multibank lending syndicate to protect the interests of the participating banks in administering a loan to a foreign or domestic borrower. Its role is similar to a bond trustee. The agent bank is responsible for notifying other banks of advances or drawdowns by the borrower and changes in interest rate. Often synonymous with Lead Bank or lead manager.
2. Bank that participates in the credit card program of another bank, by issuing credit cards and acting as a merchant depository, but does not finance the card receivables. Most financial institutions participating in bank card programs are agents rather than principal issuers.
3. Foreign bank doing business in the United States on behalf of its parent. Such banks negotiate terms for international letters of credit and act as collection agents for the parent bank, but do not accept deposits or make loans in their own name. Also called agency bank.
