PHP correspondent banking: who clears the PHP

Tracing a PHP chain

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

Who clears PHP payments?

PHP settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a PHP payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 96 distinct institutions act as PHP correspondents.

How concentrated is PHP clearing?

The three largest PHP correspondents between them serve about 38% of the banks that publish a PHP 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 PHP correspondent?

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