The Withdrawal Of Correspondent Banking Relationships

Author : Mrs.Michaela Erbenova,Ms.Yan Liu,Mr.Nadim Kyriakos-Saad,Aledjandro Lopez Mejia,Jose Giancarlo Gasha,Mr.Emmanuel Mathias,Mr.Mohamed Norat,Ms.Francisca Fernando,Ms.Yasmin Almeida
Publisher : International Monetary Fund
Page : 128 pages
File Size : 42,7 Mb
Release : 2016-06-30
Category : Political Science
ISBN : 9781498336536

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The Withdrawal of Correspondent Banking Relationships by Mrs.Michaela Erbenova,Ms.Yan Liu,Mr.Nadim Kyriakos-Saad,Aledjandro Lopez Mejia,Jose Giancarlo Gasha,Mr.Emmanuel Mathias,Mr.Mohamed Norat,Ms.Francisca Fernando,Ms.Yasmin Almeida Pdf

This paper focuses on the withdrawal of correspondent banking relationships (CBRs) in some jurisdictions post-global financial crisis. It describes existing evidence and consequences of the withdrawal of CBRs and explores drivers of this phenomenon drawing on recent surveys and select country information. While the withdrawal of CBRs has reached a critical level in some affected countries, which can have a systemic impact if unaddressed, macroeconomic consequences have not been identified so far at a global level. The paper presents responses from the international community to address this phenomenon, and explains the role that the IMF has been playing in this global effort, especially with regards to supporting member countries in the context of surveillance and technical assistance, facilitating dialogue among stakeholders, and encouraging data gathering efforts. The paper concludes by suggesting policy responses by public and private sector stakeholders needed to further mitigate potential negative impacts that could undermine financial stability, inclusion, growth and development goals.

Author : International Monetary Fund. Strategy, Policy, & Review Department,International Monetary Fund. Legal Dept.,International Monetary Fund. Monetary and Capital Markets Department
Publisher : International Monetary Fund
Page : 59 pages
File Size : 49,9 Mb
Release : 2017-04-21
Category : Business & Economics
ISBN : 9781498346900

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Recent Trends in Correspondent Banking Relationships by International Monetary Fund. Strategy, Policy, & Review Department,International Monetary Fund. Legal Dept.,International Monetary Fund. Monetary and Capital Markets Department Pdf

Correspondent banking relationships (CBRs), which facilitate global trade and economic activity, have been under pressure in several countries. So far, cross-border payments have remained stable and economic activity has been largely unaffected, despite a recent slight decrease in the number of CBRs. However, in a limited number of countries, financial fragilities have been accentuated as their cross-border flows are concentrated through fewer CBRs or maintained through alternative arrangements. These fragilities could undermine affected countries’ long-run growth and financial inclusion prospects by increasing costs of financial services and negatively affecting bank ratings.

Author : Mr.Trevor Serge Coleridge Alleyne,Mr.Jacques Bouhga-Hagbe,Mr.Thomas Dowling,Dmitriy Kovtun,Ms.Alla Myrvoda,Mr.Joel Chiedu Okwuokei,Mr.Jarkko Turunen
Publisher : International Monetary Fund
Page : 46 pages
File Size : 45,6 Mb
Release : 2017-09-29
Category : Business & Economics
ISBN : 9781484320686

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Loss of Correspondent Banking Relationships in the Caribbean by Mr.Trevor Serge Coleridge Alleyne,Mr.Jacques Bouhga-Hagbe,Mr.Thomas Dowling,Dmitriy Kovtun,Ms.Alla Myrvoda,Mr.Joel Chiedu Okwuokei,Mr.Jarkko Turunen Pdf

Banks across the Caribbean have lost important Correspondent Banking Relationships (CBRs). The macroeconomic impact has so far been limited, in part because banks either have multiple relationships or have been successful in replacing lost CBRs. However, the cost of services has increased substantially, some services have been cut back, and some sectors have experienced reduced access. Policy options to address multiple drivers, including lower profitability and risk aversion by global banks, require tailored actions by several stakeholders.

Author : Jihad Alwazir,Mr.Fazurin Jamaludin,Dongyeol Lee,Niamh Sheridan,Ms.Patrizia Tumbarello
Publisher : International Monetary Fund
Page : 29 pages
File Size : 43,7 Mb
Release : 2017-04-13
Category : Business & Economics
ISBN : 9781475594768

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Challenges in Correspondent Banking in the Small States of the Pacific by Jihad Alwazir,Mr.Fazurin Jamaludin,Dongyeol Lee,Niamh Sheridan,Ms.Patrizia Tumbarello Pdf

Access to financial services in the small states of the Pacific is being eroded. Weaknesses in Anti-Money Laundering and Combating the Financing of Terrorism compliance in the context of high levels of remittances are contributing to banks’ decisions to withdraw corresponding banking relationships and close bank accounts of money transfer operators. In this paper, we gather evidence on these developments in the small states of the Pacific, discuss the main drivers, and the potentially negative impact on the financial sector and macroeconomy. We then identify the collective efforts needed to address the consequences of withdrawal of corresponding banking relationships and outline policy measures to help the affected countries mitigate the impact.

Author : Dirk Jan Grolleman,David Jutrsa
Publisher : International Monetary Fund
Page : 48 pages
File Size : 50,9 Mb
Release : 2017-10-04
Category : Business & Economics
ISBN : 9781484323625

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Understanding Correspondent Banking Trends: A Monitoring Framework by Dirk Jan Grolleman,David Jutrsa Pdf

The withdrawal of correspondent banking relationships (CBRs) remains a concern for the international community because, in affected jurisdictions, the decline could have potential adverse consequences on international trade, growth, financial inclusion, and the stability and integrity of the financial system. Building on existing initiatives and IMF technical assistance, this paper discusses a framework that can be readily used by central banks and supervisory authorities to effectively monitor the developments of CBRs in their jurisdiction. The working paper explains the monitoring framework and includes the necessary reporting templates and an analytical tool for the collection of data and analysis of CBRs.

Author : Ms.Alison Stuart,Jihad Alwazir,Ms.Yan Liu,Mr.Scott Roger,Mr.Si Guo,Chau Nguyen,Mr.Emmanuel Mathias,Mr.Jonathan Pampolina
Publisher : International Monetary Fund
Page : 32 pages
File Size : 40,8 Mb
Release : 2019-05-01
Category : Business & Economics
ISBN : 9781498312691

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Report on the Pacific Roundtables by Ms.Alison Stuart,Jihad Alwazir,Ms.Yan Liu,Mr.Scott Roger,Mr.Si Guo,Chau Nguyen,Mr.Emmanuel Mathias,Mr.Jonathan Pampolina Pdf

The paper looks at feasible concrete action that can be taken by correspondent and respondent banks, money transfer operators, the Pacific authorities, the Australian and New Zealand authorities, and international organizations.

Author : Lea Borchert,Ralph de Haas,Karolin Kirschenmann,Alison Schultz
Publisher : Unknown
Page : 128 pages
File Size : 40,5 Mb
Release : 2021
Category : Electronic
ISBN : OCLC:1266224054

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How the Withdrawal of Global Correspondent Banks Hurts Emerging Europe by Lea Borchert,Ralph de Haas,Karolin Kirschenmann,Alison Schultz Pdf

Correspondent banks allow local banks in emerging markets to access the international payments system. This helps local banks to make cross-border payments, clear currencies, and provide trade finance. The recent retrenchment of global correspondent banks following the increased costs of financial crime compliance may therefore disrupt international trade. This policy brief shows that the withdrawal of correspondent banks from Emerging Europe has negatively and substantially affected the exports of this region. Exploiting an unexpected change in the U.S. regulator's enforcement of financial crime legislation we compare industry-level bilateral trade flows of countries experiencing a high withdrawal with those that maintain their correspondent bank relationships. We find that the decreased availability of international payment and trade finance services has considerable negative effects on exports. This negative effect is stronger for trading partners that are geographically more distant. A survey of 93 local banks confirms that banks face growing difficulties in performing cross-border payments and in clearing currencies. In particular, access to the U.S. financial system is severely inhibited and local banks can only imperfectly substitute lost correspondent bank relationships with new partners from Russia and Austria.

Author : Mrs.Michaela Erbenova,Ms.Yan Liu,Mr.Nadim Kyriakos-Saad,Aledjandro Lopez Mejia,Jose Giancarlo Gasha,Mr.Emmanuel Mathias,Mr.Mohamed Norat,Ms.Francisca Fernando,Ms.Yasmin Almeida
Publisher : International Monetary Fund
Page : 42 pages
File Size : 49,5 Mb
Release : 2016-06-30
Category : Business & Economics
ISBN : 9781498375092

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The Withdrawal of Correspondent Banking Relationships by Mrs.Michaela Erbenova,Ms.Yan Liu,Mr.Nadim Kyriakos-Saad,Aledjandro Lopez Mejia,Jose Giancarlo Gasha,Mr.Emmanuel Mathias,Mr.Mohamed Norat,Ms.Francisca Fernando,Ms.Yasmin Almeida Pdf

This paper focuses on the withdrawal of correspondent banking relationships (CBRs) in some jurisdictions post-global financial crisis. It describes existing evidence and consequences of the withdrawal of CBRs and explores drivers of this phenomenon drawing on recent surveys and select country information. While the withdrawal of CBRs has reached a critical level in some affected countries, which can have a systemic impact if unaddressed, macroeconomic consequences have not been identified so far at a global level. The paper presents responses from the international community to address this phenomenon, and explains the role that the IMF has been playing in this global effort, especially with regards to supporting member countries in the context of surveillance and technical assistance, facilitating dialogue among stakeholders, and encouraging data gathering efforts. The paper concludes by suggesting policy responses by public and private sector stakeholders needed to further mitigate potential negative impacts that could undermine financial stability, inclusion, growth and development goals.

Author : Mr.Trevor Serge Coleridge Alleyne,Mr.Jacques Bouhga-Hagbe,Mr.Thomas Dowling,Dmitriy Kovtun,Ms.Alla Myrvoda,Mr.Joel Chiedu Okwuokei,Mr.Jarkko Turunen
Publisher : International Monetary Fund
Page : 46 pages
File Size : 53,6 Mb
Release : 2017-09-29
Category : Business & Economics
ISBN : 9781484323915

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Loss of Correspondent Banking Relationships in the Caribbean by Mr.Trevor Serge Coleridge Alleyne,Mr.Jacques Bouhga-Hagbe,Mr.Thomas Dowling,Dmitriy Kovtun,Ms.Alla Myrvoda,Mr.Joel Chiedu Okwuokei,Mr.Jarkko Turunen Pdf

Banks across the Caribbean have lost important Correspondent Banking Relationships (CBRs). The macroeconomic impact has so far been limited, in part because banks either have multiple relationships or have been successful in replacing lost CBRs. However, the cost of services has increased substantially, some services have been cut back, and some sectors have experienced reduced access. Policy options to address multiple drivers, including lower profitability and risk aversion by global banks, require tailored actions by several stakeholders.

Author : International Monetary Fund. African Dept.
Publisher : International Monetary Fund
Page : 15 pages
File Size : 48,9 Mb
Release : 2018-04-18
Category : Business & Economics
ISBN : 9781484352335

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Cabo Verde by International Monetary Fund. African Dept. Pdf

Selected Issues Paper

Author : Jihad Alwazir,Mr.Fazurin Jamaludin,Dongyeol Lee,Niamh Sheridan,Ms.Patrizia Tumbarello
Publisher : International Monetary Fund
Page : 29 pages
File Size : 50,8 Mb
Release : 2017-04-07
Category : Business & Economics
ISBN : 9781475593471

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Challenges in Correspondent Banking in the Small States of the Pacific by Jihad Alwazir,Mr.Fazurin Jamaludin,Dongyeol Lee,Niamh Sheridan,Ms.Patrizia Tumbarello Pdf

Access to financial services in the small states of the Pacific is being eroded. Weaknesses in Anti-Money Laundering and Combating the Financing of Terrorism compliance in the context of high levels of remittances are contributing to banks’ decisions to withdraw corresponding banking relationships and close bank accounts of money transfer operators. In this paper, we gather evidence on these developments in the small states of the Pacific, discuss the main drivers, and the potentially negative impact on the financial sector and macroeconomy. We then identify the collective efforts needed to address the consequences of withdrawal of corresponding banking relationships and outline policy measures to help the affected countries mitigate the impact.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 114 pages
File Size : 54,8 Mb
Release : 2017-10-05
Category : Business & Economics
ISBN : 9781484306147

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International Monetary Fund Annual Report 2017 by International Monetary Fund Pdf

During the past financial year, the IMF’s 189 member countries faced a number of pressing challenges. IMF work on these challenges - slower trade, declining productivity, gender inequality, inclusive growth, and debt management - is a central focus of this 2017 Annual Report.

Author : Anonim
Publisher : World Bank Publications
Page : 64 pages
File Size : 51,9 Mb
Release : 2006-01-01
Category : Business & Economics
ISBN : 9780821367032

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Expanding Bank Outreach Through Retail Partnerships by Anonim Pdf

"This paper explores the extent to which formal, regulated financial institutions such as banks have been able to partner with "correspondents"- commercial entities whose primary objective and business is other than the provision of financial services. The paper illustrates the case of Brazil, where banks recently have developed extensive networks of such correspondents. Such arrangements result in lower costs and shared risks for participating financial institutions, making these arrangements an attractive vehicle for outreach to the underserved. Correspondent banking requires an enabling environment to emerge, and poses some regulatory challenges and some increase in risk. While there are reasons why this model was particularly successful in Brazil, it may be replicable elsewhere if appropriate regulatory adjustments are undertaken."

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 98 pages
File Size : 51,9 Mb
Release : 2009-09-14
Category : Business & Economics
ISBN : 9781589068254

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International Transactions in Remittances by International Monetary Fund Pdf

The International Transactions in Remittance: Guide for Compilers and Users (RCG) presents concepts, definitions, and classifications related to remittances. It is consistent with the new standards for measuring balance of payments transactions, as contained in the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6). These standards are used globally to compile comprehensive and comparable data. The RCG identifies the main remittances compilation methods currently being used by compilers and discusses in detail the strengths and weaknesses of each method. It is the first manual providing compilation guidance for remittances and is also the first compilation guide based on concepts set out in BPM6. Although the RCG is primarily aimed at remittances data compilers, it may also be useful for users who wish to understand remittances data.

Author : Anonim
Publisher : Unknown
Page : 134 pages
File Size : 47,6 Mb
Release : 2001
Category : Business & Economics
ISBN : STANFORD:36105062853937

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Supplement to the February 5, 2001 Report on Correspondent Banking by Anonim Pdf