De-risking of Correspondent Banking Relationships: Threats, Challenges, and Opportunities

Many countries are threatened by the potential loss of their connection to the global financial system as large international banks terminate long-standing relationships and close correspondent accounts.2 This de-risking phenomenon reflects several factors and has potential far-reaching consequences. Some of these effects are of obvious importance to the countries affected; others could have adverse consequences on shared goals, including financial inclusion, the pursuit of broad development objectives, and efforts to safeguard the integrity of the international payments system and financial stability generally.