Latest Banking Articles
A changed landscape for the financial services industry since the 2008 global financial crisis is marked primarily by benchmark regime. It places much of the focus on how the market participants will adapt and address the resulting challenges, in order to demonstrate regulatory compliance and market resilience.
A major annoyance for American companies paying suppliers outside the US, or receiving payments from foreign customers, are the fees levied by the relatively few large correspondent banks. This small group has to be used by all other banks in order to complete the foreign exchange (FX) component.
Centralisation of payments and collections, and simplification of bank account structures, have been amongst treasurers’ and finance managers’ objectives for many years. The challenges have often proved insurmountable - but that is changing.
The pressure to be compliant with the single euro payments area (SEPA) end date, originally 1 February 2014 before a six-month extension was granted, led many banks to adopt tactical rather than strategic solutions. Despite the addition of an extra transition period to bring credit transfers and direct debit payments into the SEPA format, some banks are still adopting a compliance-only approach.