In PTA arrangements, whose customers can directly control funds at the correspondent bank?

In PTA arrangements, whose customers can directly control funds at the correspondent bank?

• A. Domestic bank's customers.
• B. The foreign bank's customers.
• C. The resident central bank's customers.
• D. The respondent bank's customers.

Answer: (B)

In PTA arrangements, the person who can directly control funds at the correspondent bank is the foreign bank’s customer. This setup means the correspondent bank holds and can administer the foreign bank’s customer accounts, giving those customers direct access to funds there. The domestic bank’s customers rely on their own bank for transfers and do not have direct control at the correspondent bank. The resident central bank isn’t a party to the arrangement, and the respondent bank’s customers don’t get direct access to the funds held at the foreign bank’s accounts.

In PTA arrangements, the person who can directly control funds at the correspondent bank is the foreign bank’s customer. This setup means the correspondent bank holds and can administer the foreign bank’s customer accounts, giving those customers direct access to funds there. The domestic bank’s customers rely on their own bank for transfers and do not have direct control at the correspondent bank. The resident central bank isn’t a party to the arrangement, and the respondent bank’s customers don’t get direct access to the funds held at the foreign bank’s accounts.