Correspondent banking: Difference between revisions
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imported>Doug Williamson (Linked to The Treasurers Handbook - Payments and payment systems) |
imported>Doug Williamson (Add link.) |
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* [[Deduct from beneficiary]] | * [[Deduct from beneficiary]] | ||
* [[Documentary collection]] | * [[Documentary collection]] | ||
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* [[Nostro account]] | * [[Nostro account]] | ||
* [[Payments and payment systems]] | * [[Payments and payment systems]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Revision as of 12:14, 28 March 2016
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.
