Foreign Exchange Glossary

Correspondent Central Banking Model (CCBM)

This was a system adopted by the European System of Central Banks. The system aimed to make it possible for counter-parties to utilise suitable collateral across borders. In the CCBM, nation’s central banks operate under a custodial system, acting as guardians for each other. Each of the central banks has a securities account in its securities administration for every other central bank, as well as for the European Central Bank.