A US$68 million programme aimed at tackling banking de-risking across the Pacific is gathering momentum, as governments and financial institutions step up efforts to stabilise access to global financial systems.
The initiative, highlighted in early April, comes against a backdrop of sustained pressure on Pacific banking systems, where the loss of correspondent banking relationships has disrupted cross-border payments, trade finance, and remittance flows. For small and highly open economies, these disruptions have increased transaction costs and created uncertainty for businesses engaged in international trade.
The programme focuses on strengthening regulatory frameworks, improving compliance with anti-money laundering and counter-terrorism financing (AML/CTF) standards, and enhancing transparency to rebuild confidence among global banks. Technical assistance to local financial institutions is a key component, reflecting the capacity constraints faced by many Pacific jurisdictions.
For businesses, reliable banking access remains critical. Remittances continue to account for a significant share of GDP in several Pacific economies, reinforcing the importance of maintaining uninterrupted financial links.
Regional cooperation is central to the effort, with governments, central banks, and development partners working to address compliance gaps and restore correspondent banking ties. International bodies have also stressed that preserving these links is essential for financial stability and inclusion.
While the renewed push signals progress, the effectiveness of the programme will depend on sustained regulatory reform and continued engagement with global financial institutions.
