First Capital expands corresponding ties

FIRST Capital Bank says it has started to expand its regional and international corresponding banking relationships in a bid to avert a single supplier risk, as it angles to reap rewards in the growing regional business emanating from the African Continent Free Trade Area (AfCFTA).
Correspondent banking is an agreement between two banks whereby one (correspondent bank) carries on representative services (such as maintaining deposits, offering settlements, etc.) for another (respondent bank).

In an interview, First Capital Bank managing director Ciaran McSharry said Corresponding Banking Relationship (CBR) in the country continues to be a problem due to the perceived risk of trading with Zi