LSL correspondent banking: who clears the LSL

Tracing a LSL chain

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

Who clears LSL payments?

LSL settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a LSL payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 6 distinct institutions act as LSL correspondents.

How concentrated is LSL clearing?

The three largest LSL correspondents between them serve about 97% of the banks that publish a LSL 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 LSL correspondent?

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