LKR correspondent banking: who clears the LKR

Tracing a LKR chain

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

Who clears LKR payments?

LKR settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a LKR payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 57 distinct institutions act as LKR correspondents.

How concentrated is LKR clearing?

The three largest LKR correspondents between them serve about 44% of the banks that publish a LKR 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 LKR correspondent?

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