BMD correspondent banking: who clears the BMD

Tracing a BMD chain

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

Who clears BMD payments?

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

How concentrated is BMD clearing?

The three largest BMD correspondents between them serve about 65% of the banks that publish a BMD 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 BMD correspondent?

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