Over the last couple of years, there has been a trend towards limiting the correspondent banking relationship with the closing of the bank accounts of clients perceived as high risk, Account closure continue across the USA, the UK and Australia. These closures have significant humanitarian, economic, political and security implications. Today the Caribbean is being impacted by this phenomenon. Students will be required to critically analyze and provide policy direction on how to address this issue is the Caribbean.

As such students are expected to outline:

1. The reason why de-risking is taking place of and its impact on banking industry in the Caribbean

2. The risks, products and type of customers that are affected by de-risking and the rationale for your selection.

3. The scale and scope of de-risking in the Caribbean?

Provide examples of the countries and entities that are most affected. What policy recommendation would you propose to address the issue of de-risking? Which Caribbean and International organizations would you collaborate in providing the necessary assistance to deal with the issue of de-risking in the Caribbean? Why?

Answer rating: 100% (QA)

Derisking is defined as the phenomenon of financial institutions terminating or restricting business relationships with clients or categories of clients to avoid rather than manage risk The financial ... View the full answer