Correspondent banking: Difference between revisions
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Payments through correspondents are often executed through reciprocal accounts - ''nostro'' and ''loro'' (or ''vostro'') accounts - to which standing credit lines may be attached. | Payments through correspondents are often executed through reciprocal accounts - ''nostro'' and ''loro'' (or ''vostro'') accounts - to which standing credit lines may be attached. | ||
Correspondent banking services are primarily provided across international boundaries but are also known as agency relationships in some domestic contexts. | Correspondent banking services are primarily provided across international boundaries but are also known as agency relationships in some domestic contexts. | ||
A loro account is the term used by a correspondent to describe an account held on behalf of a foreign bank. The foreign bank would in turn regard this account as its nostro account. | A loro account is the term used by a correspondent to describe an account held on behalf of a foreign bank. The foreign bank would in turn regard this account as its nostro account. | ||
== See also == | == See also == | ||
* [[Agency]] | * [[Agency]] | ||
* [[Beneficiary leg]] | |||
* [[Deduct from beneficiary]] | * [[Deduct from beneficiary]] | ||
* [[Documentary collection]] | * [[Documentary collection]] | ||
* [[In-flight leg]] | |||
* [[Network bank]] | |||
* [[Nostro account]] | * [[Nostro account]] | ||
* [[Originator leg]] | |||
* [[Payments and payment systems]] | |||
* [[SLA partner banking]] | |||
* [[Society for Worldwide Interbank Financial Telecommunications]] (SWIFT) | |||
[[Category:Long_term_funding]] | |||
Latest revision as of 13:45, 5 February 2025
An arrangement under which one bank provides payment and other services to another bank.
Payments through correspondents are often executed through reciprocal accounts - nostro and loro (or vostro) accounts - to which standing credit lines may be attached.
Correspondent banking services are primarily provided across international boundaries but are also known as agency relationships in some domestic contexts.
A loro account is the term used by a correspondent to describe an account held on behalf of a foreign bank. The foreign bank would in turn regard this account as its nostro account.
