A nostro account is an account a financial institution holds with another institution, typically in the other institution's market or currency. From the first institution's perspective it is “our account with you†and can support cross-border payment settlement and liquidity management.
Quick reference for Nostro account
| Check | What it means for the transaction |
|---|---|
| Category | Global B2B payment operations |
| Record to keep | Keep the instruction, party and account identifiers, validation result, timestamps, institution references and reconciliation outcome. |
| Do not infer | Initiation, processing, clearing and settlement are different events. One status should not be used as proof of another. |
Nostro account and nearby terms
- Correspondent bank: A correspondent bank provides payment or other banking services to another financial institution, often where the sending and receiving banks lack a direct relationship or local access.
- Vostro account: A vostro account is an account a financial institution holds on behalf of another institution.
- Settlement: Payment settlement is the completion of the transfer of funds between the relevant financial institutions or accounts.
