NAD correspondent banking: who clears the NAD

Tracing a NAD chain

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

Who clears NAD payments?

NAD settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a NAD payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 15 distinct institutions act as NAD correspondents.

How concentrated is NAD clearing?

The three largest NAD correspondents between them serve about 68% of the banks that publish a NAD 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 NAD correspondent?

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