LBP correspondent banking: who clears the LBP

Tracing a LBP chain

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

Who clears LBP payments?

LBP settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a LBP payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 23 distinct institutions act as LBP correspondents.

How concentrated is LBP clearing?

The three largest LBP correspondents between them serve about 60% of the banks that publish a LBP 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 LBP correspondent?

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