Malta : ING to stop clearing US dollar transactions for BOV as of December

Bank of Valletta’s last correspondent bank for US dollars transactions is pulling the plug on its relationship with the Maltese bank come December.

ING will stop clearing US dollar transactions for BOV as of December 14, the Maltese bank said in a brief statement to the market on Monday morning.

“Bank of Valletta plc has intensified its endeavours to engage alternative correspondents to minimise any possible operational disruption to its business and its clients,” BOV said in its statement.

The Times reports talk of ING ending its relationship with BOV has been swirling for several months, with the Dutch bank reportedly keen to cut ties with smaller jurisdictions it considers to be too risky to be worth serving.

“We are preparing for all eventualities and will find ways and means to widen the pool [of US dollar transaction providers],” the official had said. Bank of Valletta had already lost US dollar services through Deutsche Bank two years ago.

Banks form relationships with other banks to ensure they can move capital quickly and easily between jurisdictions.

Via The Times of Malta