The IFC released a report on how correspondent banking relationships — bilateral agreements to handle basic services such as remittances or letters of credit — are having the effect of shutting out households and SMEs from the global financial system. In a new survey of more than 300 of its banking clients around the world, the IFC found that more than one in four reported a decline in their CBRs. In seven countries — including Kenya, Lebanon, Pakistan, Paraguay and Vietnam — the banks said that a lack of CBRs, or tightened terms on the ties that remain, were their sole obstacle to growth.

via Financial Times