SBD correspondent banking: who clears the SBD

Tracing a SBD chain

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

Who clears SBD payments?

SBD settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a SBD payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 11 distinct institutions act as SBD correspondents.

How concentrated is SBD clearing?

The three largest SBD correspondents between them serve about 73% of the banks that publish a SBD 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 SBD correspondent?

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