Correspondent banking: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson m (Category added 9/10/13 and spacing) |
||
| Line 6: | Line 6: | ||
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 == | ||
| Line 12: | Line 13: | ||
* [[Documentary collection]] | * [[Documentary collection]] | ||
* [[Nostro account]] | * [[Nostro account]] | ||
[[Category:Long_term_funding]] | |||
Revision as of 09:49, 9 October 2013
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.
