Correspondent banking faces a problem of definition. Five years ago the business was preoccupied with electronic funds transfer. The spread of Swift’s messaging network and the developing of the equally efficient clearing systems promised to elevate the medium through which banks communicate and fitted the traditional concept of correspondent banks talking to each other.
By streamlining this function, however, the nature of the business changed and the importance of nurturing interbank relationships dwindled in the eyes of some correspondent bankers. Technology tends to lead to concentration, because the customer has gone to the bank that is bigger and faster, and can handle more volume, explains Ian Cormack, who heads Citicorp’s financial institutions group in London and sits on the council of the clearing system in the UK.
Moving or receiving money has always been at the heart of interbank activity. Lawrence Grand, international banking director at B
A. increased the need for correspondent banks to work closely together.
B. had little effect on correspondent banking.
C. reduced the importance of correspondent banking interrelationships.
D. led to a decrease in correspondent banking business.
Correspondent banking faces a problem of definition. Five years ago the business was preoccupied with electronic funds transfer. The spread of Swift’s messaging network and the developing of the equally efficient clearing systems promised to elevate the medium through which banks communicate and fitted the traditional concept of correspondent banks talking to each other.
By streamlining this function, however, the nature of the business changed and the importance of nurturing interbank relationships dwindled in the eyes of some correspondent bankers. Technology tends to lead to concentration, because the customer has gone to the bank that is bigger and faster, and can handle more volume, explains Ian Cormack, who heads Citicorp’s financial institutions group in London and sits on the council of the clearing system in the UK.
Moving or receiving money has always been at the heart of interbank activity. Lawrence Grand, international banking director at B
A. Technology threatens correspondent banking.
B. Correspondent banking remains traditional.
C. Correspondent banking- technology demonstrates its worth.
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