TWD correspondent banking: who clears the TWD

Tracing a TWD chain

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

Who clears TWD payments?

TWD settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a TWD payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 21 distinct institutions act as TWD correspondents.

How concentrated is TWD clearing?

The three largest TWD correspondents between them serve about 49% of the banks that publish a TWD 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 TWD correspondent?

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