Increased Regulation and De-Risking Are Impeding Cross-Border Financing in Emerging Markets
Correspondent banking relationships connect banks and people across borders and are critical to finance and trade. They are a vital link between emerging markets and the broader global economy. Yet efforts to combat money laundering and the financi...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/903641517385565431/Increased-regulation-and-de-risking-are-impeding-cross-border-financing-in-emerging-markets http://hdl.handle.net/10986/30374 |
| Summary: | Correspondent banking relationships
connect banks and people across borders and are critical to
finance and trade. They are a vital link between emerging
markets and the broader global economy. Yet efforts to
combat money laundering and the financing of terrorism have
increased compliance requirements for banks. Difficulties
adhering to these requirements and increased costs
associated with them threaten the ability of banks to serve
their customers, while also eroding the number and quality
of correspondent banking relationships. A recent
International Finance Corporation (IFC) survey shows that
many banks are feeling the pressure of increased regulation
and de-risking, and emerging market banks are bearing the
brunt of it. |
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