KHR correspondent banking: who clears the KHR

Tracing a KHR chain

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

Who clears KHR payments?

KHR settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a KHR payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 10 distinct institutions act as KHR correspondents.

How concentrated is KHR clearing?

The three largest KHR correspondents between them serve about 53% of the banks that publish a KHR 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 KHR correspondent?

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