Escrow Account Definition

PPB Banker-Customer Relationship Free JAIIB Capsule 39 views Updated 20 Sep 2026

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PPB · Banker-Customer Relationship

What is an Escrow account in banking, and when is it primarily used by customers?

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An account where funds/documents are held by the bank until specific conditions of a transaction are fulfilled.

The bank acts as a trustee or escrow agent. Used heavily in mergers, acquisitions, and real estate to protect both buyers and sellers.

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Escrow Account Definition — Full Text

What is an Escrow account in banking, and when is it primarily used by customers?

Answer

An account where funds/documents are held by the bank until specific conditions of a transaction are fulfilled.

Additional notes

The bank acts as a trustee or escrow agent. Used heavily in mergers, acquisitions, and real estate to protect both buyers and sellers.

Part of Principles & Practices of Banking · Banker-Customer Relationship · Last updated 20 Sep 2026

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