- 20 Marks
ITF – APR 2024 – L3 – Q7 – Correspondent Banking and Payment Concerns]
Define correspondent banking, list ten services with JP Morgan Chase, and explain concerns with nostro balance, value date, account details, and cut-off time for a USD payment.
Question
a. Your bank’s main US Dollar Correspondent Bank is JP Morgan Chase, New York.
i. Briefly define Correspondent Banking. [2 Marks]
ii. List ten (10) services that take place between your bank and JP Morgan Chase in this relationship. [10 Marks]
b. A Cocoa Farmer from Duyaw Nkwanta calls at your bank and offered to pay his son’s University fees of USD15, 000.00 to Santa Rosa University in California, USA. In making this payment today through your account with JP Morgan Chase, why would you be concerned with the following:
i) Balance on the Nostro Account [2 Marks]
ii) Value Date [2 Marks]
iii) Account Details of Santa Rosa University [2 Marks]
iv) Cut-Off Time [2 Marks] [Total Marks 20]
Find Related Questions by Tags, levels, etc.
- Tags: account details, correspondent banking, cut-off time, nostro account, Services, value date
- Level: Level 3
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