Knowledge Note

At the request of the G20 and the Financial Stability Board (FSB), and with the support of the Committee on Payments and Market Infrastructures (CPMI), the World Bank Group has led fact-finding work on de-risking – the phenomenon of financial institutions terminating or restricting business relationships with clients or categories of clients to avoid, rather than manage, risk. This paper will briefly summarize the key findings of both reports, as well as recommendations from these factfinding efforts. The two complete reports are annexed to this summary. Annex 1 is the report entitled “Withdrawal from Correspondent Banking: Where, Why, and What to Do about It.” Annex 2 is the “Report on the G20 Survey on De-risking Activities in the Remittance Market.”

About the Presenters

World Bank Group