Dealer Bank

Posted in Finance, Accounting and Economics Terms, Total Reads: 378
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Definition: Dealer Bank

Dealer bank is a commercial bank which buys/sells government securities. The money generated is used for the funding of government projects .iT registered with the municipal Securities board. It is permitted to buy and sell municipal securities on its own account.


Since the stability of the banks is very important for the economy so the bank generally invests in the securities which are of low risk nature.


The Primary dealers in the government Securities market are divided into two categories standalone primary dealers and Bank primary dealers.


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