Small states that face economic problems because of the loss of correspondent banks should work together to fight the impact of de-risking collectively, according to the International Monetary Fund (IMF).
Tao Zhang, the deputy managing director of the IMF, admitted there was “no quick fix” to the problems.
But he told a conference on the withdrawal of correspondent banking relationships in the Caribbean that banks and regulators acting collectively across borders could lead to concrete action.
“The overarching objective is to safeguard the integrity of financial systems, and at the same time address the unintended consequences of and collateral damages from stronger regulation,” said Zhang.
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