Both the domestic banking sector and the international financial services sector in the Caribbean face this challenge. A correspondent banking relation is crucial for financial institutions in the Caribbean, given their limited access to foreign financial markets. Furthermore, without a correspondent banking relation, Caribbean financial institutions cannot properly service clients’ accounts.
That follows a structure for forward guidance that the Committee first began last August, when it said conditions were likely to warrant exceptionally low rates through mid 2013. Then in January, it pushed back that calendar date another 18 months.