SDG correspondent banking: who clears the SDG

Tracing a SDG chain

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

Who clears SDG payments?

SDG settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a SDG payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 4 distinct institutions act as SDG correspondents.

How concentrated is SDG clearing?

The three largest SDG correspondents between them serve about 83% of the banks that publish a SDG 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 SDG correspondent?

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