Correspondent banking network
Definition:
Correspondent banking is an arrangement whereby one bank (correspondent) holds deposits owned by other banks (respondents) and provides those banks with payment and other services (CPMI (2016)). Correspondent banking networks are critical for firms and households that conduct business or send payments internationally.
Correspondent banking – final report
https://www.bis.org/cpmi/publ/d147.htm
Details:
Correspondent banking is the international system through which you can send and receive money from anywhere in the world. Note that by using correspondent banking, that is in fact a graph of billateral agreements the sender and receiver bank may not be part of the same central settlement system.
Note:
This is a series of posts with definitions for the jargon used in #banking, #fintech and #payments.
Too many people use some terms without understanding them beyond the definition.
Too many “experts” use the terms but they never had experience with the actual implementation of anything in #banking, #fintech and #payments.