ZWG correspondent banking: who clears the ZWG

Tracing a ZWG chain

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

Who clears ZWG payments?

ZWG settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a ZWG payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 5 distinct institutions act as ZWG correspondents.

How concentrated is ZWG clearing?

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

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