BB Governor against withdrawal of correspondent banking

 While participating in a discussion on current regulatory issues at Bank for International Settlements (BIS) in Switzerland Saturday, Dr. Atiur Rahman, Governor of Bangladesh Bank (BB) expressed his concern against withdrawal of correspondent banking by some banks of developed countries affecting small remitters of developing countries like Bangladesh. The banks of developing countries are being denied of this relationship on the plea of money laundering. Dr. Rahman argued that such a move is in fact leading to financial exclusion with huge implications for the families of the remitters. He also urged upon governors of developed countries and International Financial Institutions like World Bank to take necessary policy initiatives to 'de-risk' these small transactions. Otherwise the families of remitters will be badly affected which goes against spirit of poverty reduction and social development as designed under SDG. Later Dr. Rahman also shared his concern with Governor Noyer, Chairman of BIS Board at the Reception and requested him to take the lead in resolving these critical issues. BB Governor added that Bangladesh has been working hard to reduce money-laundering risk and has come out of FATF grey list. He assured him of Bangladesh of remaining ever vigilant on this issue. Governor Noyer appreciated BB Governor's concern and assured him of his leadership role. In addition, Governor Rahman informed the governors and BIS officials that Bangladesh Bank has already issued guidance to banks and financial institutions on Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) in line with Basel III requirements. It may be mentioned here that Governor Atiur Rahman is participating in the AGM of BIS, held in Basel, Switzerland. He will also participate in the Steering Committee Meeting of Alliance for Financial Inclusion (AFI) at the last day of the meeting, according to a BB statement.