GMD correspondent banking: who clears the GMD

Tracing a GMD chain

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

Who clears GMD payments?

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

How concentrated is GMD clearing?

The three largest GMD correspondents between them serve about 82% of the banks that publish a GMD 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 GMD correspondent?

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