Find round sovereign in bank (7)
I believe the answer is:
terrace
'bank' is the definition.
(a bank of houses)
'find round sovereign' is the wordplay.
'find' becomes 'trace' (I've seen this before).
'round' means one lot of letters goes inside another.
'sovereign' becomes 'er' (Abbreviation for Elizabeth Regina).
'trace' enclosing 'er' is 'TERRACE'.
'in' acts as a link.
(Other definitions for terrace that I've seen before include "Row of houses joined together" , "From which spectators watch" , "Row of housing" , "Abutting row of houses" , "Stadium standing area" .)