The global Financial Stability Board (FSB) chose Cape Town as the venue for one of its regular plenary meetings this week and one of the aspects of its work that is particularly topical for SA is correspondent banking. The board, set up during the 2008 global financial crisis, brings together 24 countries (including SA), that account for more than 90% of the world’s financial assets and monitors any risks to global financial stability. One concern that has emerged in the past couple of years is that there has been a global decline in correspondent banking services and many emerging-market countries are losing access to these. These are the arrangements banks have with counterparties in other countries and they matter a great deal in terms of individuals’ and companies’ ability to trade and transact across borders. As the FSB put it last year: "Losing access to correspondent banking services affects the ability to send and receive international payments, which is essential for compan...
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