The Committee on Payments and Market Infrastructures recently released an analysis of new data on correspondent banking for 2019. The number of active correspondent banks worldwide fell by about 3% in 2019 and about 22% between 2011 and 2019. Over the last eight years, the rate of decline has varied across jurisdictions and is more pronounced in emerging market economies and small island developing states and dependent territories.
The volume and value of cross-border payments continued to grow over the last eight years, suggesting a higher concentration in payment flows. A large share of countries lost active correspondents even where the value and volume of cross-border payments have increased between 2011 and 2019 (top left quadrants, below). At the same time, some jurisdictions experienced a decline in both active correspondents and value and volume (bottom left quadrants).
While the 2020 data will not be available for some time, early indications suggest that the Covid-19 crisis is likely to accelerate changes in correspondent banking landscape.
Source: The Bank for International Settlements (BIS)