Front Matter
Author:
Dirk Jan Grolleman
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David Jutrsa
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Front Matter Page

Monetary and Capital Markets

Contents

  • Abstract

  • Glossary

  • I. Introduction

  • II. Concepts Used for Building a CBR Monitoring Framework

    • A. Number of Correspondent Banking Relationships

    • B. Measuring Transaction Volumes and Values

    • C. Currency Corridors

    • D. Business Identifier Codes

    • E. Minimum Scope and Expanded Scope Framework

    • F. Active Correspondents

    • G. Direct, Nested or Global Relationships

    • H. Scope of Services, Restrictions, Profitability

    • I. SWIFT Payment Messages

    • J. Initial Ordering and Ultimate Beneficiary Bank

    • K. Going from Minimum to Expanded Scope Monitoring

  • III. Minimum Scope CBR Monitoring Framework

    • A. Data Collection and Database Format

    • B. Analysis and Reporting Dashboard

    • C. Additional Analysis

      • Limitations and Restrictions

      • Remittances

      • Credit lines

  • IV. Expanded Scope Monitoring Framework

    • A. Data Collection and Database Format

    • B. Analytical Tool Programmed in R

    • C. Network Analysis

    • D. Analysis and Network Maps

  • V. Conclusion

  • References

  • Annex I.A: Minimum Scope Template

  • Annex I.B: Expanded Scope Template

  • Annex I.C: Clustering of Business Identifier Codes

  • Annex II: Programming Code Analytical Tool for Swift Data Analysis

  • Annex III: Background Network Analysis

  • Annex IV: CPI List Used for Country Data Analysis

  • Figures:

  • Figure 1: Stylized Cross-Border Payment Chain

  • Figure 2: Stylized Nested Cross-Border Payment Chains

  • Figure 3: System-Level AC and CBR Development

  • Figure 4: Bank-Level (B3) AC and CBR Development

  • Figure 5: Analyzing Remittances Flows

  • Figure 6. 2016 Institution-Level, System (All U.S. Dollar Relationships)…

  • Figure 7. 2016 System-Level U.S. Dollar Correspondent Relationships

  • Figure 8. 2016 System-Level Euro Correspondent Banking Relationships

  • Figure 9. 2016 System-Level All Correspondent Banking Relationships…

  • Figure 10. 2016 Bank-Level Correspondent Relationships

  • Figure 11. 2016 Country-Level, System (All Relationships)

  • Figure 12. 2016 Country-Level, System (All Relationships)

  • Boxes:

  • Box 1. Network Analysis: Selection Menu in Program Code

Glossary

AC

Active Correspondent

BIC8

Eight Character Business Identifier Code

CB

Correspondent Bank

CBCG

Correspondent Banking Coordination Group

CBR

Correspondent Banking Relationship

CPMI

Committee for Payments and Market Infrastructures

CSV

Comma Separated Values

FATF

Financial Action Task Force

FIU

Financial Intelligence Unit

FSB

Financial Stability Board

GPFI

Global Partnership for Financial Inclusion

G-SIBs

Globally Systemically Important Banks

IMF

International Monetary Fund

ITRS

International Transaction Reporting System

ISO

International Organization for Standardization

MCM

Monetary and Capital Markets Department

MT

Message Type

MTO

Money Transfer Operators

WB

World Bank

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Understanding Correspondent Banking Trends: A Monitoring Framework
Author:
Dirk Jan Grolleman
and
David Jutrsa