Financial Stability Board Progress Report on Addressing Correspondent Banking Decline
11/16/2018The Financial Stability Board has published a progress report addressed to the G20 Finance Ministers and Central Bank Governors on the FSB's four-point action plan to assess and address the decline in correspondent banking relationships. The progress report is accompanied by an update to the Correspondent Banking Data Report published by the FSB March 2018. The updated data report includes additional data from July - December 2017 derived from information provided by SWIFT to the FSB, through the intermediation of the National Bank of Belgium. The data report shows a further decline in active correspondent banking relationships in 2017.
The progress report sets out actions taken since the FSB's March 2018 progress report. Actions taken by the FSB since March include:
- Data collection and analysis further examining the scale of the issue, its effects and its implications.
- Clarifying regulatory expectations, including further work from the Financial Action Task Force and the Basel Committee on Banking Supervision on their guidance.
- Domestic capacity-building to improve and build trust in the supervisory and compliance frameworks in jurisdictions that are home to affected respondent banks.
- Strengthening tools for due diligence by correspondent banks, through supporting the implementation of the recommendations in the July 2016 report of the Committee on Payments and Market Infrastructures on correspondent banking.
- Monitoring of the implementation of the FSB's 19 recommendations in its March 2018 report on improving remittance service providers' access to banking services.
The FSB states in the progress report that, now that the international components of the correspondent banking action plan are largely in place, the focus of the FSB's Correspondent Banking Coordination Group is now turning to the monitoring of implementation and of developments. Next steps in the continuation of monitoring work are outlined in the progress report.
View the progress report.
View the updated Correspondent Banking Data Report.
View details of the FSB's March 2018 progress report and action plan on remittance service providers' access to banking services.
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