2017年-ECB欧洲央行_Tenth_survey_on_correspondent_banking_in_euro_2016_31页_464kb

Summary of the Tenth Survey on Correspondent Banking in Euro

Core Content

The Tenth Survey on Correspondent Banking in Euro, conducted in May 2016, provides an overview of the correspondent banking market in the euro area. It examines the value, volume, and average size of transactions, as well as the concentration of the market and the impact of regulatory changes and the Single Euro Payments Area (SEPA) migration on correspondent banking activity.

Main Points

1. Role of Correspondent Banking

• Correspondent banking remains a vital channel for cross-border payments in the euro area.
• It allows indirect access to payment systems and supports financial inclusion, especially for small businesses and individuals.
• The Eurosystem has monitored correspondent banking since the ECB's establishment, but has not imposed specific oversight requirements, to avoid double regulation.

2. Survey Overview

• The survey includes data from 16 banks in seven euro area countries.
• The threshold of €1 billion average daily turnover on loro accounts was used to ensure efficiency.
• The survey includes two questionnaires: a general one and an additional one for very active banks.
• A new qualitative section was introduced to understand the reasons behind changes in correspondent banking activities.

3. Key Trends in the Survey Results

3.1 Value of Transactions

• The total value of loro transactions decreased by about 10% from €996 billion in 2014 to €878 billion in 2016.
• Nostro transactions showed an increase, rising from €106 billion in 2014 to €117 billion in 2016, mainly driven by the wholesale sector.

3.2 Volume of Transactions

• The volume of transactions increased slightly since the previous survey.
• Retail transactions remain stable, as many are recurring payments.
• Nostro transaction volume rose from 158,000 to 176,000 daily, with most of the increase coming from the wholesale segment.

3.3 Average Transaction Size

• The average size of loro transactions decreased from €45,500 in 2012 to €33,000 in 2016.
• Nostro transactions showed a stable average size of around €667,000, similar to 2014.
• The wide range in transaction sizes reflects the diversity in banking activities, with some banks focusing on retail and others on wholesale transactions.

3.4 Number of Customer and Service-Providing Banks

• The number of customer banks decreased to less than 10,000 (from a loro perspective).
• The number of service-providing banks dropped to 401 (from a nostro perspective), a new low.
• The decline is attributed to rising compliance costs and the limited number of banks meeting the €1 billion threshold.

3.5 Concentration in the Market

• The correspondent banking market remains highly concentrated, with a few key players handling the majority of transactions.
• The top banks have remained consistent across surveys, indicating stability in market leadership.
• The survey may not be fully representative of the nostro market, which includes more smaller banks.

3.6 Settlement Through Payment Systems

• Around 46% of payments from correspondent banking arrangements were settled through payment systems in 2016, down from 52% in 2014.
• TARGET2 accounted for over 78% of the value of payments settled through payment systems, up from 74.57% in 2014.
• EURO1 and STEP2-T accounted for 18.50% and just over 1%, respectively.

Key Information

• SEPA Impact: The completion of the SEPA migration and the introduction of stricter regulations have contributed to a decline in correspondent banking activity.
• Regulatory Compliance: Increased KYC and AML/CFT requirements have raised compliance costs and influenced banks' strategies, leading to a reduction in the number of correspondent banking relationships.
• Market Concentration: The market remains highly concentrated, with a few large banks dominating the activity.
• Future Outlook: Banks have mixed expectations about future activity, with some anticipating growth due to increased customer numbers and new services, while others foresee continued challenges due to regulatory burdens and limited risk appetite.
• Fintech Influence: There is an expectation of increased competition from fintech companies offering digital correspondent banking solutions.
• Retail vs. Wholesale: Retail correspondent banking accounts for the majority of transaction volume, while wholesale accounts for a smaller portion but higher value transactions.

Conclusion

The Tenth Survey highlights a continued decline in correspondent banking activity, particularly in terms of transaction value and number of relationships. This is attributed to regulatory changes, the SEPA migration, and shifting business strategies. Despite these challenges, correspondent banking remains essential for cross-border payments and financial inclusion, especially for smaller banks and businesses. The market is expected to evolve with the rise of fintech and potential changes in regulatory environments.