A clearing bank is a financial institution that is responsible for processing and reconciling transactions between banks. It is also known as a central bank or settlement bank. Some synonyms for clearing bank include settlement bank, correspondent bank, intermediary bank, and processing bank. A settlement bank is responsible for settling transactions and ensuring that funds are transferred between banks as per their directions. A correspondent bank acts as a link between two banks for transactions that are not settled through the clearing process. An intermediary bank is similar to a correspondent bank, but it may have additional roles in the processing of transactions. A processing bank handles the administrative tasks of processing transactions and ensuring that they are completed accurately.