Understanding Correspondent Banking Trends: A Monitoring Framework / Dirk Grolleman, David Jutrsa.

Format:

Book

Government document

Author/Creator:

Grolleman, Dirk.

Contributor:

Jutrsa, David.

Series:

IMF Working Papers; Working Paper ; No. 2017/216

IMF Working Papers

Language:

English

Physical Description:

1 online resource (49 pages)

Edition:

1st ed.

Other Title:

Understanding Correspondent Banking Trends

Place of Publication:

Washington, D.C. : International Monetary Fund, 2017.

Summary:

The withdrawal of correspondent banking relationships (CBRs) remains a concern for the international community because, in affected jurisdictions, the decline could have potential adverse consequences on international trade, growth, financial inclusion, and the stability and integrity of the financial system. Building on existing initiatives and IMF technical assistance, this paper discusses a framework that can be readily used by central banks and supervisory authorities to effectively monitor the developments of CBRs in their jurisdiction. The working paper explains the monitoring framework and includes the necessary reporting templates and an analytical tool for the collection of data and analysis of CBRs.

Contents:

Cover

Contents

Abstract

Glossary

I. Introduction

II. Concepts Used for Building a CBR Monitoring Framework

A. Number of Correspondent Banking Relationships

B. Measuring Transaction Volumes and Values

C. Currency Corridors

D. Business Identifier Codes

E. Minimum Scope and Expanded Scope Framework

F. Active Correspondents

G. Direct, Nested or Global Relationships

H. Scope of Services, Restrictions, Profitability

I. SWIFT Payment Messages

J. Initial Ordering and Ultimate Beneficiary Bank

K. Going from Minimum to Expanded Scope Monitoring

III. Minimum Scope CBR Monitoring Framework

A. Data Collection and Database Format

B. Analysis and Reporting Dashboard

C. Additional Analysis

Limitations and Restrictions

Remittances

Credit lines

IV. Expanded Scope Monitoring Framework

B. Analytical Tool Programmed in R

C. Network Analysis

D. Analysis and Network Maps

V. Conclusion

References

Annex

Annex I.A: Minimum Scope Template

Annex I.B: Expanded Scope Template

Annex I.C: Clustering of Business Identifier Codes

Annex II: Programming Code Analytical Tool for Swift Data Analysis

Annex III: Background Network Analysis

Annex IV: CPI List Used for Country Data Analysis

Figures

Figure 1: Stylized Cross-Border Payment Chain

Figure 2: Stylized Nested Cross-Border Payment Chains

Figure 3: System-Level AC and CBR Development

Figure 4: Bank-Level (B3) AC and CBR Development

Figure 5: Analyzing Remittances Flows

Figure 6. 2016 Institution-Level, System (All U.S. Dollar Relationships)

Figure 7. 2016 System-Level U.S. Dollar Correspondent Relationships

Figure 8. 2016 System-Level Euro Correspondent Banking Relationships

Figure 9. 2016 System-Level All Correspondent Banking Relationships.

Figure 10. 2016 Bank-Level Correspondent Relationships

Figure 11. 2016 Country-Level, System (All Relationships)

Figure 12. 2016 Country-Level, System (All Relationships)

Boxes

Box 1. Network Analysis: Selection Menu in Program Code.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781484324349

148432434X

9781484324363

1484324366

OCLC:

1009241360