Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems

Caribbean countries have been seriously impacted by the trend toward “de-risking” in the global financial system, and this is damaging to their economic security and the ability of Caribbean businesses to innovate. De-risking is the name given to the tendency of banking institutions to turn away fro...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autor principal:	Williams, Robert Crane
Formato:	Texto
Lenguaje:	English
Publicado:	ECLAC, Subregional Headquarters for the Caribbean 2017
Materias:	TRANSFERENCIA ELECTRONICA DE FONDOS INTERNET DINERO TECNOLOGIA DE LA INFORMACION TECNOLOGIA DE LAS COMUNICACIONES INNOVACIONES SERVICIOS FINANCIEROS INSTITUCIONES FINANCIERAS SISTEMA MONETARIO INTERNACIONAL GESTION DE LOS RIESGOS REGULACION ECONOMICA SISTEMAS BANCARIOS ELABORACION DE POLITICAS ESTRATEGIAS DEL DESARROLLO COOPERACION INTERNACIONAL ELECTRONIC FUNDS TRANSFER MONEY INFORMATION TECHNOLOGY COMMUNICATION TECHNOLOGY INNOVATIONS FINANCIAL SERVICES FINANCIAL INSTITUTIONS INTERNATIONAL MONETARY SYSTEM RISK MANAGEMENT ECONOMIC REGULATION BANKING SYSTEMS POLICY-MAKING DEVELOPMENT STRATEGIES INTERNATIONAL COOPERATION
Acceso en línea:	http://hdl.handle.net/11362/41139
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai-11362-41139
record_format	dspace
spelling	oai-11362-411392020-03-06T16:50:27Z Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems Williams, Robert Crane TRANSFERENCIA ELECTRONICA DE FONDOS INTERNET DINERO TECNOLOGIA DE LA INFORMACION TECNOLOGIA DE LAS COMUNICACIONES INNOVACIONES SERVICIOS FINANCIEROS INSTITUCIONES FINANCIERAS SISTEMA MONETARIO INTERNACIONAL GESTION DE LOS RIESGOS REGULACION ECONOMICA SISTEMAS BANCARIOS ELABORACION DE POLITICAS ESTRATEGIAS DEL DESARROLLO COOPERACION INTERNACIONAL ELECTRONIC FUNDS TRANSFER INTERNET MONEY INFORMATION TECHNOLOGY COMMUNICATION TECHNOLOGY INNOVATIONS FINANCIAL SERVICES FINANCIAL INSTITUTIONS INTERNATIONAL MONETARY SYSTEM RISK MANAGEMENT ECONOMIC REGULATION BANKING SYSTEMS POLICY-MAKING DEVELOPMENT STRATEGIES INTERNATIONAL COOPERATION Caribbean countries have been seriously impacted by the trend toward “de-risking” in the global financial system, and this is damaging to their economic security and the ability of Caribbean businesses to innovate. De-risking is the name given to the tendency of banking institutions to turn away from working relationships and lines of business for which the cost of regulatory compliance—and the risk of non-compliance— is deemed to be too high in comparison to the returns. This is a phenomenon that is affecting developing economies around the world, but the small and vulnerable economies of the Caribbean have been hardest hit. For example, recent years have seen a trend in which banks in major economies are severing their correspondent relationships with banks in the Caribbean, having determined that the profitability of these operations is outweighed by the cost of managing associated risks. Banks in the Caribbean have been left struggling to recover from this abandonment by many of their former business partners, having been reliant on these correspondent banking relationships as a means of access to global financial networks (Boyse and Kendall 2016). Under correspondent banking schemes, a “correspondent bank” – typically a banking institution with a presence in a major developed economy, such as the United States or European Union – holds an account on behalf of a bank located in a smaller, less developed economy. Many Caribbean banks use these correspondent accounts to provide their customers with international money transfer and foreign exchange services. However, institutional and regulatory factors have driven correspondent banks to reduce their exposure to risk. Particular areas of concern include issues surrounding anti-money laundering and combating the financing of terrorism (AML/CFT) and the need to ensure compliance with international trade sanctions. The costs associated with the high level of customer due diligence required to manage such risks are, in many cases, not justified by the low profit margins associated with correspondent banking services. As a result, many Caribbean banks are finding that the correspondent banking relationships that they have relied on in the past are being cut off. Introduction. -- I. Blockchain-based models for financial institutions. -- A. The open model. -- B. The permissioned model. -- C. The centralized model. -- II. Use of blockchains for settlement and clearing. -- III. Conclusion. -- Bibliography . 2017-04-12T21:15:45Z 2017-04-12T21:15:45Z 2017-04 Texto Documento Completo http://hdl.handle.net/11362/41139 LC/CAR/2017/2 en .pdf application/pdf CARIBE CARIBBEAN REGION ECLAC, Subregional Headquarters for the Caribbean
institution	Cepal
collection	Cepal
language	English
topic	TRANSFERENCIA ELECTRONICA DE FONDOS INTERNET DINERO TECNOLOGIA DE LA INFORMACION TECNOLOGIA DE LAS COMUNICACIONES INNOVACIONES SERVICIOS FINANCIEROS INSTITUCIONES FINANCIERAS SISTEMA MONETARIO INTERNACIONAL GESTION DE LOS RIESGOS REGULACION ECONOMICA SISTEMAS BANCARIOS ELABORACION DE POLITICAS ESTRATEGIAS DEL DESARROLLO COOPERACION INTERNACIONAL ELECTRONIC FUNDS TRANSFER INTERNET MONEY INFORMATION TECHNOLOGY COMMUNICATION TECHNOLOGY INNOVATIONS FINANCIAL SERVICES FINANCIAL INSTITUTIONS INTERNATIONAL MONETARY SYSTEM RISK MANAGEMENT ECONOMIC REGULATION BANKING SYSTEMS POLICY-MAKING DEVELOPMENT STRATEGIES INTERNATIONAL COOPERATION
spellingShingle	TRANSFERENCIA ELECTRONICA DE FONDOS INTERNET DINERO TECNOLOGIA DE LA INFORMACION TECNOLOGIA DE LAS COMUNICACIONES INNOVACIONES SERVICIOS FINANCIEROS INSTITUCIONES FINANCIERAS SISTEMA MONETARIO INTERNACIONAL GESTION DE LOS RIESGOS REGULACION ECONOMICA SISTEMAS BANCARIOS ELABORACION DE POLITICAS ESTRATEGIAS DEL DESARROLLO COOPERACION INTERNACIONAL ELECTRONIC FUNDS TRANSFER INTERNET MONEY INFORMATION TECHNOLOGY COMMUNICATION TECHNOLOGY INNOVATIONS FINANCIAL SERVICES FINANCIAL INSTITUTIONS INTERNATIONAL MONETARY SYSTEM RISK MANAGEMENT ECONOMIC REGULATION BANKING SYSTEMS POLICY-MAKING DEVELOPMENT STRATEGIES INTERNATIONAL COOPERATION Williams, Robert Crane Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems
description	Caribbean countries have been seriously impacted by the trend toward “de-risking” in the global financial system, and this is damaging to their economic security and the ability of Caribbean businesses to innovate. De-risking is the name given to the tendency of banking institutions to turn away from working relationships and lines of business for which the cost of regulatory compliance—and the risk of non-compliance— is deemed to be too high in comparison to the returns. This is a phenomenon that is affecting developing economies around the world, but the small and vulnerable economies of the Caribbean have been hardest hit. For example, recent years have seen a trend in which banks in major economies are severing their correspondent relationships with banks in the Caribbean, having determined that the profitability of these operations is outweighed by the cost of managing associated risks. Banks in the Caribbean have been left struggling to recover from this abandonment by many of their former business partners, having been reliant on these correspondent banking relationships as a means of access to global financial networks (Boyse and Kendall 2016). Under correspondent banking schemes, a “correspondent bank” – typically a banking institution with a presence in a major developed economy, such as the United States or European Union – holds an account on behalf of a bank located in a smaller, less developed economy. Many Caribbean banks use these correspondent accounts to provide their customers with international money transfer and foreign exchange services. However, institutional and regulatory factors have driven correspondent banks to reduce their exposure to risk. Particular areas of concern include issues surrounding anti-money laundering and combating the financing of terrorism (AML/CFT) and the need to ensure compliance with international trade sanctions. The costs associated with the high level of customer due diligence required to manage such risks are, in many cases, not justified by the low profit margins associated with correspondent banking services. As a result, many Caribbean banks are finding that the correspondent banking relationships that they have relied on in the past are being cut off.
format	Texto
author	Williams, Robert Crane
author_facet	Williams, Robert Crane
author_sort	Williams, Robert Crane
title	Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems
title_short	Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems
title_full	Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems
title_fullStr	Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems
title_full_unstemmed	Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems
title_sort	prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to caribbean financial systems
publisher	ECLAC, Subregional Headquarters for the Caribbean
publishDate	2017
url	http://hdl.handle.net/11362/41139
work_keys_str_mv	AT williamsrobertcrane prospectsforblockchainbasedsettlementframeworksasaresolutiontothethreatofderiskingtocaribbeanfinancialsystems
_version_	1718436439956389888

Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems

Ejemplares similares