TRADE FINANCE TALKS
7.3
Has trade finance pulled the plug on correspondent banking? Correspondent Banking should in the future reinvent itself to accompany initiatives provided by multilaterals and Development Financial Institutions in the African market.
MATHIEU SAADATI
Trade Professional TFG’s International Trade Professionals Programme Founder Fitracor
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Correspondent Banking is the process connecting two banks enabling the execution of foreign currency (‘FC’) denominated transactions. In an interconnected world, access to reliable and efficient correspondent banking partners is of paramount importance to properly conduct the financial institutions’ business, support domestic economies and
rightfully settle trade finance operations. Why has this become a challenge for financial institutions in emerging countries and particularly in Africa since 2009? Why are Correspondent Banking matters complex and what are the tools to efficiently address these concerns and support the continent’s potential and steady sustainability?
WHAT IS CORRESPONDENT BANKING? Correspondent Banking basically refers to a bank (‘the Correspondent’) providing remote services to another one (‘the Respondent’).
tradefinanceglobal.com
