What is a bank reference?

A bank reference is a formal letter issued by a bank or financial institution on behalf of their client, usually a business or an individual, confirming their financial details to a third party. This reference letter indicates the account holder's creditworthiness, account standing, and ability to honor their financial obligations.

Typically, a bank reference includes details on the client's banking history, credit score, and balance in their account. Additionally, it may mention the nature of the relationship between the bank and the client, including the length of that relationship.

A bank reference is often required by lenders, landlords, or other parties seeking financial information about a client. It can play an essential role in determining whether an applicant is qualified for a loan, rental property, or other financial transactions.

It is worth noting that a bank reference may be subject to a fee, and some financial institutions may require their clients to provide authorization before issuing the reference letter.