FSB published updated data on correspondent banking relationships, using the data provided by SWIFT. The data is published as part of the action plan of FSB to assess and address the decline in correspondent banking relationships. Additionally, BCBS, CPMI, the Financial Action Task Force (FATF), and FSB published a statement welcoming the Correspondent Banking Due Diligence Questionnaire by the Wolfsberg Group as one of the industry initiatives that will help to address the decline in the number of correspondent banking relationships by facilitating due diligence processes.
The report finds that reduction in the total number of active correspondents, as measured by the number of banks that have sent or received messages, continued in the first half of 2017. While there may be some seasonality in the changes in the latest six months, the number of active correspondents in June 2017 is also lower than in June 2016. There are regional variations in the figures. The twelve-month rates of change between June 2016 and June 2017 appear to confirm increases in the average number of active corridors per country (that is, of direct relationships with other countries, measured by the flow of SWIFT messages) for North America and Eastern Europe and slower declines than in June 2015 to June 2016 in Africa and Oceania. However, the rate of decline between June 2016 and June 2017 increased in the Americas (excluding North America), Asia, and Europe (excluding Eastern Europe) compared with the change from June 2015 to June 2016.
In line with previous analysis by the CPMI and FSB Correspondent Banking Data Report of July 2017, data continues to show that, at the global level, the decline in the number of active correspondents has not resulted in a lower number of payment messages (volume) or a lower underlying value of the messages processed through SWIFT. A fuller analysis, including methodological enhancements, will be published by mid-2018, based on end-2017 data.
- FSB Press Release on Data Update
- FSB Press Release on Industry Initiative
- BIS Press Release on Industry Initiative
Keywords: International, Banking, Correspondent Banking, Due Diligence Questionnaire, FSB
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APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.