How do banks settle international payments internally?

Asked Jan 5, 2016· 1 answer
Faisal KhanAnswered Jan 5, 2016
Banks settle payment with each other based on shared ledgers. This could be a direct relationship or assisted via the central bank or correspondent banks. Most of the transaction settlement is via correspondent banking.

To get a heuristic understanding of how money is settled amongst banks, take a look at this answer: Faisal Khan's answer to How does money transfer between banks and different countries work?
Money Plumbing (How Money Moves)Correspondent Banking RelationshipsSettlement ModelsCorrespondent Tie-Ups
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