ETB correspondent banking: who clears the ETB

Tracing a ETB chain

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

Who clears ETB payments?

ETB settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a ETB payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 7 distinct institutions act as ETB correspondents.

How concentrated is ETB clearing?

The three largest ETB correspondents between them serve about 73% of the banks that publish a ETB 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 ETB correspondent?

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