agent bank

6.3

A bank that manages loan payments and communication for other banks

noun
/ˈeɪdʒənt bæŋk/

Specialized

: banco agente

The agent bank coordinates communication between the borrower and the lenders in a syndicated loan.

Examples

When problems arose, the agent bank stepped in to resolve disputes among the participating banks.
Each member of the group relied on the agent bank to distribute payments correctly.
The agent bank facilitated the loan agreement.
An agent bank is essential in complex financial deals.
The agent bank is responsible for managing the loan disbursement process for multiple lenders.
In a syndicated loan, the agent bank acts on behalf of all lenders to streamline communication.
To ensure transparency, the agent bank provides detailed reports to each lending institution involved.

Synonyms

lead bank

vsagent bank

Jargon

1 6.9

A bank that coordinates a group of other banks to give a loan together

acts on behalf of other banks to manage loans and transactions rather than lead coordination

Surface Forms

agent bank singular

agent banks plural

Morphology

agent + bank

The meaning is directly compositional from 'agent' (a representative who acts for others) + 'bank' (a financial institution): an agent bank is simply a bank acting as an agent for others. This noun–noun modification is a productive pattern in English (and mirrored in many languages), so a B1 learner who knows both constituents should be able to infer the meaning.

Etymology

Agent bank comes from agent — a person who 'acts for others' — and bank. Imagine one bank doing the work for a group: it sends payments, talks with the borrower and solves problems. That's why agent bank means a bank that 'acts for' other banks to manage payments and communication.