NIO correspondent banking: who clears the NIO

Tracing a NIO chain

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

Who clears NIO payments?

NIO settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a NIO payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 1 distinct institutions act as NIO correspondents.

How concentrated is NIO clearing?

The three largest NIO correspondents between them serve about 100% of the banks that publish a NIO 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 NIO correspondent?

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