KYD correspondent banking: who clears the KYD

Tracing a KYD chain

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

Who clears KYD payments?

KYD settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a KYD payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 9 distinct institutions act as KYD correspondents.

How concentrated is KYD clearing?

The three largest KYD correspondents between them serve about 85% of the banks that publish a KYD 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 KYD correspondent?

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