Withdrawal from Correspondent Banking

Correspondent banking services are
essential to enabling companies and individuals to transact
internationally and make cross-border payments. Recently
there have been indications that certain large international
banks have started terminating or severely limiting their
correspondent banking relationships with smaller local and
regional banks from jurisdictions around the world. To find
out whether this is indeed happening, the World Bank, with
support from the Financial Stability Board (FSB) and the
Committee on Payments and Market Infrastructures (CPMI),
surveyed banking authorities and banks worldwide to examine
the extent of withdrawal from correspondent banking, its
drivers, and its implications for financial
exclusion/inclusion. In total, 110 banking authorities, 20
large banks, and 170 smaller local and regional banks
participated in this exercise. This document includes
finding of the survey, conclusions, and recommendations.