BIF correspondent banking: who clears the BIF

Tracing a BIF chain

Each instruction names the institution holding that bank's BIF account. Following those links repeatedly ends at a bank that publishes no onward BIF instruction — the ultimate clearer, with direct access to clearing. That is where the money actually settles before moving inwards to the beneficiary.

Who clears BIF payments?

BIF settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a BIF payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 9 distinct institutions act as BIF correspondents.

How concentrated is BIF clearing?

The three largest BIF correspondents between them serve about 57% of the banks that publish a BIF instruction. Concentration matters because the withdrawal of one correspondent can affect a large number of respondent banks at once.

How do I find a bank's BIF correspondent?

Search the bank's BIC, select BIF, and the chain resolves hop by hop to the institution that clears the currency, including the nostro account number on each relationship.