We want to expand untapped corridors where correspondence arrangements are needed and are not available. Would we be allowed to make a correspondence arrangement with Banks in that territory?

See this answer for the correspondent tie-up agreement.

If you do not have an existing correspondent tie-up agreement in place you can do one of two things:

Start the necessary procedure to have a correspondent tie-up agreement in place, the sponsoring principal license holder will be happy to oblige to this. Do remember, that this is not something that happens in days, it can take a couple of weeks at best.
You can find, either for the interim period or indefinitely, a third-party correspondent that already has access to the beneficiary payout country of choice.

In both cases, our solution providers would be happy to oblige.