ISK correspondent banking: who clears the ISK

Tracing a ISK chain

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

Who clears ISK payments?

ISK settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a ISK payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 89 distinct institutions act as ISK correspondents.

How concentrated is ISK clearing?

The three largest ISK correspondents between them serve about 40% of the banks that publish a ISK 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 ISK correspondent?

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