LRD correspondent banking: who clears the LRD

Tracing a LRD chain

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

Who clears LRD payments?

LRD settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a LRD payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 3 distinct institutions act as LRD correspondents.

How concentrated is LRD clearing?

The three largest LRD correspondents between them serve about 100% of the banks that publish a LRD 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 LRD correspondent?

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