Local banks arranged account (9)
I believe the answer is:
narrative
'account' is the definition.
(narrative is a kind of account)
'local banks arranged' is the wordplay.
'local' becomes 'native' (relating to a particular area).
'banks' is an insertion indicator (bank can mean to surround or border).
'arranged' becomes 'arr' (abbreviation).
'native' placed around 'arr' is 'NARRATIVE'.
(Other definitions for narrative that I've seen before include "Report" , "Storyline" , "Chronicle" , "Account of connected events, a story" , "Verbal account" .)