World Bank Group2015-12-142015-12-142015-11-01https://hdl.handle.net/10986/23335Correspondent banking services are essential to enabling companies and individuals to transact internationally and make cross-border payments. Recently there have been indications that certain large international banks have started terminating or severely limiting their correspondent banking relationships with smaller local and regional banks from jurisdictions around the world. To find out whether this is indeed happening, the World Bank, with support from the Financial Stability Board (FSB) and the Committee on Payments and Market Infrastructures (CPMI), surveyed banking authorities and banks worldwide to examine the extent of withdrawal from correspondent banking, its drivers, and its implications for financial exclusion/inclusion. In total, 110 banking authorities, 20 large banks, and 170 smaller local and regional banks participated in this exercise. This document includes finding of the survey, conclusions, and recommendations.en-USCC BY 3.0 IGODEPOSITFINANCIAL SERVICESRECEIPTACCOUNTINGDEPOSITSCUSTOMERSMALL BANKSPAYMENT SERVICEMONEY LAUNDERINGFINANCINGREGIONAL BANKSINTERESTACCESS TO PAYMENTLAWSINDUSTRYREMITTANCEBANKING SYSTEMSTRATEGIESBANKING SERVICESINFORMATIONLIQUIDITYSERVICESDISCRIMINATIONMONEY TRANSFERINTERNATIONAL BUSINESSINFORMATION SHARINGREORGANIZATIONCAPACITY BUILDINGPRICINGFEECORRUPTIONPAYMENTSCENTRAL BANKSCREDIT INSTITUTIONINTERNATIONAL BANKMARKET INFRASTRUCTURESECONOMIC ACTIVITYACCESS TO FINANCIAL SERVICESJURISDICTIONSANTI-MONEY LAUNDERINGSAVINGSTECHNICAL ASSISTANCEPENALTIESCURRENCYSETTLEMENT SYSTEMSFINANCIAL INSTITUTIONBANKING RELATIONSHIPSUNIONCURRENT ACCOUNTPRIVATE BANKSFOREIGN CURRENCIESDEPOSIT ACCOUNTSTRANSFERSDOMESTIC BANKSFINANCIAL INSTITUTIONSPAYMENTMARKETSCAPITAL REQUIREMENTSFOREIGN ASSETSLEGISLATIONWIRE TRANSFERFINANCEFOREIGN CURRENCYBANKING SECTORBANKSSUPERVISORY AUTHORITIESCAPITALTRANSPARENCYFINANCIAL STABILITYCUSTOMER BASETRADE FINANCECOMPLIANCE COSTSSUBSIDIARIESACCESS TO FINANCEVALUEBANKCREDITLEGAL BARRIERSINTERNAL CONTROLSSOURCE OF INFORMATIONFOREIGN BANKSCASH MANAGEMENTAFFILIATESOFFSHORE BANKINGBALANCE SHEETFACTORSFOREIGN EXCHANGEREGULATIONEASTERN CARIBBEAN CENTRAL BANKSUBSIDIARYPROFITABILITYCREDIT RISKWIRE TRANSFERSTRADEINTERESTSLANDPRUDENTIAL REQUIREMENTSINVESTMENTRISKLACK OF KNOWLEDGECONTRACTUAL OBLIGATIONBUSINESS STRATEGYPAYMENT SERVICESBANKINGINTERNATIONAL PAYMENT SYSTEMSBANKING RELATIONSHIPCENTRAL BANKINGLEGAL REQUIREMENTSSTUDENTSBORROWINGINVESTMENTSRISK MANAGEMENTLENDINGCHAMBER OF COMMERCESAVINGS BANKSCORRESPONDENT BANKSBANKING SUPERVISIONCUSTOMERSOUTREACHREMITTANCESACCOUNT HOLDERGOVERNMENTSPAYMENT SYSTEMSRESERVE BANK OF NEW ZEALANDINTERNATIONAL BANKSCREDIT INSTITUTIONSGUARANTEESAVINGS BANKCONSUMER PROTECTIONGROUP OF BANKSCONSOLIDATIONWorking PaperWorld Bank10.1596/23335