Fronting Bank

The term “fron­ting” comes from the credit busi­ness and here in parti­cu­lar from the syndi­ca­tion of loans. The fron­ting bank repres­ents the sub-parti­ci­­pa­­ting banks in its own name, but for the account of a third party. The bank issuing the loan is ther­e­fore on the “front line” vis-à-vis the borrower.