Bank of Valletta plc has this morning announced that it has been advised by Raiffeisen Bank International (Raiffeisen) that it is seeking to terminate its US dollar correspondence relationship with the Bank with effect from 31 March 2021.
In a statement, BOV said that it was engaging in discussions with Raiffeisen regarding the ongoing correspondent banking relationship supporting US$ payments with a view to satisfying any concerns and restoring the position.
BOV are also actively considering alternative routes to diversify the available channels for the payment of US$.
Raiffeisen follow in the footsteps of Deutsche Bank and ING Bank in annoucning the termination of their relationship with BOV. Correspondent banks are essentil to provide domestic banks with access foreign financial markets and conduct transactions in other countries, particularly in dollars.
Last year, BOV had said that it was seeking to secure new relationships for correspondent banking, but no announcements were made in this regard.
