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I came across this article the other day. It is by Scott Paul who works for Oxfam.
It is well worth a read. In case you are pressed for time – I have copied one paragraph below.
Though banks should make individualized assessments of the risks their clients present, governments are primarily responsible for turning the tide of de-risking. The declining risk appetites of banks are largely tied to enforcement, prosecution, regulation, and a general political climate that discourages serving clients perceived as high risk and dealing with high-risk jurisdictions generally, while offering little to no incentive to serve clients that are providing valuable services to poor, vulnerable, and financially excluded populations. Ironically, as high-risk clients lose their accounts with major banks, they turn to smaller banks with less capacity to manage risk and other less regulated channels –increasing the total amount of risk in the global financial system.
Perhaps understandably – ire about derisking has been focused on the banks. The paragraph above is, in my opinion, a superb summary that gets right to the heart of the matter.