ARS correspondent banking: who clears the ARS

Tracing a ARS chain

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

Who clears ARS payments?

ARS settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a ARS payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 36 distinct institutions act as ARS correspondents.

How concentrated is ARS clearing?

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

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