LYD correspondent banking: who clears the LYD

Tracing a LYD chain

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

Who clears LYD payments?

LYD settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a LYD payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 13 distinct institutions act as LYD correspondents.

How concentrated is LYD clearing?

The three largest LYD correspondents between them serve about 62% of the banks that publish a LYD 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 LYD correspondent?

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