PAB correspondent banking: who clears the PAB

Tracing a PAB chain

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

Who clears PAB payments?

PAB settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a PAB payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 8 distinct institutions act as PAB correspondents.

How concentrated is PAB clearing?

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

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