ZMW correspondent banking: who clears the ZMW

Tracing a ZMW chain

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

Who clears ZMW payments?

ZMW settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a ZMW payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 29 distinct institutions act as ZMW correspondents.

How concentrated is ZMW clearing?

The three largest ZMW correspondents between them serve about 52% of the banks that publish a ZMW 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 ZMW correspondent?

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