IDR correspondent banking: who clears the IDR

Tracing a IDR chain

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

Who clears IDR payments?

IDR settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a IDR payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 99 distinct institutions act as IDR correspondents.

How concentrated is IDR clearing?

The three largest IDR correspondents between them serve about 35% of the banks that publish a IDR 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 IDR correspondent?

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