BHD correspondent banking: who clears the BHD

Tracing a BHD chain

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

Who clears BHD payments?

BHD settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a BHD payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 111 distinct institutions act as BHD correspondents.

How concentrated is BHD clearing?

The three largest BHD correspondents between them serve about 36% of the banks that publish a BHD 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 BHD correspondent?

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