As Russian troops continue to attack the Ukrainian capital, Kyiv, the effectiveness of economic sanctions imposed on Russia are coming into question.

In a joint statement over the weekend, the US, the European Union and other nations announced a suite of sanctions, including a measure which has been described as the “nuclear option” when it comes to economic sanctions; namely, booting Russian banks off a messaging system known as SWIFT (Society for Worldwide Interbank Financial Telecommunication) which helps facilitate trillions of dollars in global banking transactions each year.

The move has brought this obscure part of the global banking system into the spotlight. So, what is SWIFT, and what impact will banning Russian banks from it have?

Today on Please Explain, business reporter Clancy Yeates joins Jess Irvine to discuss.