Correspondent banking

PAYMENT SETTLED VIA CORRESPONDENT BANKING
1. Debiting of payer’s account with bank A
2. Crediting of bank B’s mirror account with bank A, which is kept for accounting purposes
3. Payment message from bank A to bank B via telecommunication network
4. Debiting of bank A’s account with bank B (loro account)

A. Use correspondent bank only
5. Crediting of bank C’s account with bank B
6. Payment message from bank B to bank C via telecommunication network
7. Debiting of bank’s B mirror account with bank C, which is kept for accounting purposes
8. Crediting of receiver’s account with bank C

B. Involvement of payment system
5. Payment message from bank B to payment system
6. Settlement via payment system
7. Payment message from payment system to bank C
8. Crediting of receiver’s account with bank C