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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BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.