Cross-Border Banking

Definition ∞ Cross-border banking involves financial transactions and services conducted between individuals, businesses, or institutions located in different countries. These operations include international payments, remittances, trade finance, and foreign exchange. Traditional cross-border banking often faces challenges related to high costs, slow settlement times, and complex regulatory compliance across multiple jurisdictions. It is a fundamental component of global commerce.
Context ∞ Digital assets and blockchain technology are frequently discussed in crypto news as potential disruptors to traditional cross-border banking. Cryptocurrencies and stablecoins offer faster, cheaper, and more transparent alternatives for international transfers. Regulatory bodies are examining how to integrate these innovations while mitigating risks like money laundering and capital flight, leading to ongoing policy debates.