Correspondent Banking
Also called: correspondent bank, nostro account, de-risking
Correspondent banking is one bank holding an account for another so it can make payments in a currency or country where it has no presence. It's the plumbing of cross-border payments. Anti-money-laundering liability has driven large banks to exit riskier relationships wholesale — de-risking — which has cut off entire small economies from the dollar system, an unintended consequence regulators now acknowledge.