PYG correspondent banking: who clears the PYG

Tracing a PYG chain

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

Who clears PYG payments?

PYG settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a PYG payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 3 distinct institutions act as PYG correspondents.

How concentrated is PYG clearing?

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

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