In-flight leg
Payments - correspondent banking - SWIFT - Financial Stability Board (FSB).
The in-flight leg is a concept in correspondent banking.
A correspondent banking payment over SWIFT - and the total time it takes to be credited to the beneficiary's account - can be viewed as comprising:
- Originator leg
- In-flight leg and
- Beneficiary leg.
The originator leg is the time, over the SWIFT network, from when the originating bank initiates the payment on the SWIFT network until the beneficiary bank receives it, either directly from the originating bank or through one or more intermediary banks or a financial market infrastructure (FMI).
In terms of delays, it is more often the beneficiary leg that is the greatest problem.
(Source - Annual Progress Report on Meeting the Targets for Cross-border Payments p45 - October 2024 - Financial Stability Board.)
See also
- Beneficiary leg
- Correspondent banking
- Documentary collection
- Network bank
- Nostro account
- Originator
- Originator leg
- Payments and payment systems
- SLA partner banking
- Society for Worldwide Interbank Financial Telecommunications (SWIFT)
