Cost-management in correspondent banking relationships
Cost-management is essential and highly specific sphere, which requires applying adequate decision- making approach as a part of the bank’s internal value creation process. Correspondent banking is a dynamically growing area of management and controlling methods applied in banks on the one hand and...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2017-12-01
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| Series: | Geopolitics under Globalization |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10183/GG_2017_02_Sloboda.pdf |
| _version_ | 1818138794329636864 |
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| author | Larysa Sloboda |
| author_facet | Larysa Sloboda |
| author_sort | Larysa Sloboda |
| collection | DOAJ |
| description | Cost-management is essential and highly specific sphere, which requires applying adequate decision- making approach as a part of the bank’s internal value creation process. Correspondent banking is a dynamically growing area of management and controlling methods applied in banks on the one hand and high risk financial segment of the regulators’ measures and expectations around the world on the other. The purpose of this research is to outline the main challenges for cost-management development in correspondent banking relationships (CBRs) around the world with recommendations for Ukraine. The paper explains the key reasons and essential components of cost-management system for managing risks and costs in CBRs based on the analytical results of transactions volume, comparing drivers of restriction of CBRs, rapidly growing number of different types of compliance and operational costs. As a result, the study highlights the cost-cutting measures based on digital assets solutions and blockchain technologies that can help banks to eliminate and lower costs of customer on-boarding, due diligence and money laundering prevention, foreign exchange and currency hedging, treasury and payment operations, liquidity and capital raising. |
| first_indexed | 2024-12-11T10:17:51Z |
| format | Article |
| id | doaj.art-7d02b23e9a72410ab57f48352807ebe6 |
| institution | Directory Open Access Journal |
| issn | 2543-5493 2543-9820 |
| language | English |
| last_indexed | 2024-12-11T10:17:51Z |
| publishDate | 2017-12-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Geopolitics under Globalization |
| spelling | doaj.art-7d02b23e9a72410ab57f48352807ebe62022-12-22T01:11:34ZengLLC "CPC "Business Perspectives"Geopolitics under Globalization2543-54932543-98202017-12-0112213310.21511/gg.01(2).2017.0310183Cost-management in correspondent banking relationshipsLarysa Sloboda0Ph.D. (Economics), Associate Professor, Lviv Banking Institute of Banking UniversityCost-management is essential and highly specific sphere, which requires applying adequate decision- making approach as a part of the bank’s internal value creation process. Correspondent banking is a dynamically growing area of management and controlling methods applied in banks on the one hand and high risk financial segment of the regulators’ measures and expectations around the world on the other. The purpose of this research is to outline the main challenges for cost-management development in correspondent banking relationships (CBRs) around the world with recommendations for Ukraine. The paper explains the key reasons and essential components of cost-management system for managing risks and costs in CBRs based on the analytical results of transactions volume, comparing drivers of restriction of CBRs, rapidly growing number of different types of compliance and operational costs. As a result, the study highlights the cost-cutting measures based on digital assets solutions and blockchain technologies that can help banks to eliminate and lower costs of customer on-boarding, due diligence and money laundering prevention, foreign exchange and currency hedging, treasury and payment operations, liquidity and capital raising.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10183/GG_2017_02_Sloboda.pdfAnti-Money Laundering (AML)bankingblockchain technologiescompliance costsdue diligenceKnow your Customer (KYC) |
| spellingShingle | Larysa Sloboda Cost-management in correspondent banking relationships Geopolitics under Globalization Anti-Money Laundering (AML) banking blockchain technologies compliance costs due diligence Know your Customer (KYC) |
| title | Cost-management in correspondent banking relationships |
| title_full | Cost-management in correspondent banking relationships |
| title_fullStr | Cost-management in correspondent banking relationships |
| title_full_unstemmed | Cost-management in correspondent banking relationships |
| title_short | Cost-management in correspondent banking relationships |
| title_sort | cost management in correspondent banking relationships |
| topic | Anti-Money Laundering (AML) banking blockchain technologies compliance costs due diligence Know your Customer (KYC) |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10183/GG_2017_02_Sloboda.pdf |
| work_keys_str_mv | AT larysasloboda costmanagementincorrespondentbankingrelationships |