> For the complete documentation index, see [llms.txt](https://docs.xft.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xft.finance/learn/flows/payments/correspondent-banking.md).

# Correspondent banking

<figure><img src="/files/kF5I1PfHrx3CAglp2CJH" alt=""><figcaption></figcaption></figure>

```
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
```

<figure><img src="/files/JGgSvIFTvw4WbT0bbe2t" alt=""><figcaption></figcaption></figure>

RESOURCES

[Overview of Correspondent Banking "De-Risking" Issues](https://www.congress.gov/crs_external_products/IF/HTML/IF10873.web.html)