Developing the correspondent banking relationship in international payments at Vietnamese commercial banks

Abstract

Along with the trend of the ever-increasingly deep global economic integration, the banking system plays a role
as an indispensable intermediary in foreign relations by means of providing prestigious payment and financing
services, helping to funnel money to the organizations, businesses and individuals, which allows them to grow
faster and supply even more of the desirable goods and services. The expansion in the quantity and improvement
in the quality of the operation of the system of correspondent banks have allowed them to self-manage their
transactions, contributing to saving time and costs in order to improve the quality and efficiency of business
operations, especially for the foreign banking relations wherein international payment plays a key role. In addition,
developing the system of correspondent banks in a selective manner have also helped commercial banks go
beyond the limit of sales and the number of products and services through a wide variety of new international
payment products such as UPAS, L/C, forward D/P and multiple product variations