The FSB has published an update on its ongoing work to address the decline in correspondent banking that has emerged in recent years.
The latest report notes that the number of active correspondent banks reduced by 3.4% in 2018. This decline is a concern for the overall financial banking infrastructure, and in particular remittance service providers’ ability to access banking services – particularly critical in developing economies which may rely to a significant extent on remittance service providers.
The report calls for further work by national authorities, international organisations and banks to promote dialogue and communication between the banking and remittance sectors, international standards and oversight of the remittance sector and the use of innovation in the remittance sectors.
The FSB noted that if necessary they will adopt further direct measures to address this decline.