KRW correspondent banking: who clears the KRW

Tracing a KRW chain

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

Who clears KRW payments?

KRW settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a KRW payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 78 distinct institutions act as KRW correspondents.

How concentrated is KRW clearing?

The three largest KRW correspondents between them serve about 41% of the banks that publish a KRW 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 KRW correspondent?

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