KGS correspondent banking: who clears the KGS

Tracing a KGS chain

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

Who clears KGS payments?

KGS settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a KGS payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 11 distinct institutions act as KGS correspondents.

How concentrated is KGS clearing?

The three largest KGS correspondents between them serve about 55% of the banks that publish a KGS 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 KGS correspondent?

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