The divisions responsible for risk management, compliance with regulations, and strategy make up the middle office of a bank. The middle office ensures that the deals negotiated by the front office comply with all relevant laws and are as per the bank’s agreements with its counterparties.
Together, the middle and back offices support the activities of the client-facing front office.
For more information, please check out: Front Office, Middle Office & Back Office of a Bank: A Simple Explanation for Kids