bank reference definition

bank reference

Information released by a bank about a customer, to another bank or lending institution. Bank references generally include (1) number of years of a customer's relationship with the bank, (2) number of loans and the amounts of their balances, (3) type and quality of collateral(s) provided, and (4) a copy of the customer's latest statement of financial affairs on file with the bank. Banks usually are under no obligation to seek the customer's approval (or to reveal the identity of the recipient) for releasing such information.

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