SWIFT

SWIFT

TOPIC: Economy

Context- The European Union, US, UK and allies have agreed to exclude a number of Russian banks from Swift, an international payment system used by thousands of financial institutions.

Concept-

What is Swift?

• Swift is the global financial artery that allows the smooth and rapid transfer of money across borders.
• It stands for Society for Worldwide Interbank Financial Telecommunication.
• Created in 1973 and based in Belgium, Swift links 11,000 banks and institutions in more than 200 countries.
• It is a sort of instant messaging system that informs users when payments have been sent and arrived.

Who owns and controls Swift?

• Swift was created by American and European banks.
• The network is now jointly-owned by more than 2,000 banks and financial institutions.
• It is overseen by the National Bank of Belgium, in partnership with major central banks around the world.
• Swift helps make secure international trade possible for its members.