Bankers bank: A bankers bank is a bank whose customers are other banks.
Where it comes from
FFIEC peer group 301. Bankers banks sell correspondent services to community banks: loan participations, cash letter and settlement, investment services and lines of credit. They are owned by the banks they serve and are kept out of competing with them for retail business.
How to read it
A bankers bank’s balance sheet looks nothing like a community bank’s, because it has no retail deposits and no branches. That is why the FFIEC gives them a peer group of their own instead of sorting them by size.
The common mistake. Reading a bankers bank’s ratios against ordinary banks. Its deposits are correspondent balances and its cost base is wholesale, so neither its funding cost nor its efficiency ratio compares to a bank with a branch network.
Go deeper
- FFIEC peer group codes explained
- BankingLens pricing and what a subscription adds: percentile rank against the bank’s own FFIEC peer group, fourteen quarters of trend, and the flags an examiner reaches for first.
See also. FFIEC peer group, De novo bank, Core deposits.
This page is generated by _tools/seo/build_glossary.mjs and carries no figure that was typed in. See our methodology and disclaimer. Definitions are general guidance, not regulatory or investment advice.