What Does ABA Stand for in Checks?

ABA stands for American Bankers Association, which, according to the ABA website, represents over 95 percent of banking assets in the United States, making it the largest banking group in the United States.

ABA Transit Number

The ABA assigns routing numbers to each financial institution for identifying the bank responsible for fulfilling the check. The first nine digits on the bottom of the check constitute the transit number.

Significance

The two numbers that start the routing number indicate the type of institution associated with the number. For example, a number that starts with "00" represents a U.S. Government account whereas 21 through 32 usually denote a thrift account.

Who Can Have an ABA Number?

In order to have an ABA routing number, an institution must be able to have an account at a Federal Reserve Bank. ABA numbers do not indicate the size of the bank.

History

The ABA was founded in 1875. In 1910 the nine digit routing numbers were created.

Functions

In addition to tracking checks, the ABA also lobbies the government on behalf of banks and provides educational services to member institutions.

References

• Investopedia - American Bankers Association
• ABA Routing Numbers
• Investopedia - ABA Transit Number

Resources

• About the ABA