A major international bank has stepped in to provide correspondent banking services to some twenty banks in the region.
IMF Managing Director, Christine Lagarde, made the announcement at the fund’s High-Level Caribbean forum yesterday.
Ms. Lagarde did not name the bank but says it’s helped the region tremendously.
IMF Legal Counsel, Sean Hagan, adds that the major bank has been acting as an intermediary for the past 10 months.
Mr. Hagan says the idea came out of a closed-door meeting, facilitated by the IMF, between correspondent and regional banks in Barbados in February.
A second meeting took place in Kingston on Monday.
Meanwhile, Ms. Lagarde says another major bank has also stepped up to provide technical support to small banks in the region.
Over the past few years, several Caribbean banks, including some in Jamaica, have been severely affected by the correspondent banking crisis, as large foreign banks refused to do business with them.
In Jamaica, it resulted in some cambios and remittance companies being unable to provide services.