In the role of an Agent Bank, which statement is true regarding card issuing?

The statement that the agent bank issues cards branded under its own name is true because agent banks often partner with a sponsoring bank to provide card services and may have the capability to issue cards that carry their own branding. This allows the agent bank to offer a product that they can market specifically, ensuring it aligns with their overall service offerings and brand strategy.

This arrangement can also enhance customer loyalty, as cardholders may feel a stronger connection to a card that is explicitly tied to a recognized brand they trust. Moreover, issuing cards under its own name allows the agent bank to maintain a degree of control over the cardholder experience while still benefiting from the operational support and regulatory guidance of the sponsoring bank.

In the context of the other options, the agent bank does not take full liability for card transactions, as that liability typically resides with the sponsoring bank or is shared under specific arrangements. The agent bank has a relationship with the sponsoring bank, which is fundamental to its role and operation. Lastly, though the agent bank may not directly solicit cardholders, it usually plays a significant role in marketing and customer engagement efforts. This allows the agent bank to leverage its brand presence and establish a customer base through various marketing channels.