GBP correspondent banking: who clears the pound sterling

Tracing a GBP chain

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

Who clears GBP payments?

GBP settles through CHAPS. Banks without direct access hold a nostro account with a correspondent that has it, so a GBP payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 774 distinct institutions act as GBP correspondents.

How concentrated is GBP clearing?

The three largest GBP correspondents between them serve about 24% of the banks that publish a GBP 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 GBP correspondent?

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