The withdrawal of Correspondent Banking relationships (CBRs), a well-documented global phenomenon
affecting many emerging markets and developing economies, has adverse consequences and negative
externalities for Pacific Islanders, including seasonal workers, small and medium enterprises (SMEs), and vulnerable populations. Based on publicly available data, the number of active correspondents for Pacific banks has declined significantly since 2011 to unsustainably low levels that put the whole Pacific financial system at risk. Pacific Island Countries (PICs) are uniquely vulnerable to the withdrawal of the CBRs that underpin international trade, tourism, remittances, and humanitarian financial flows.
In response to these risks, the Pacific Strengthening Correspondent Banking Relationships Project was
developed as a coordinated regional initiative aimed at safeguarding continued access to international financial services.
This report details the project’s progress for the year 2025, highlighting key achievements, challenges encountered, and strategic adjustments made to strengthen the resilience of correspondent banking relationships across Pacific Island Countries.
