A vostro account is an account a financial institution holds on behalf of another institution. From the account-servicing institution's perspective it is “your account with us.†The same correspondent relationship may therefore be described as nostro by one party and vostro by the other.
Quick reference for Vostro 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. |
Vostro 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.
- Nostro account: A nostro account is an account a financial institution holds with another institution, typically in the other institution's market or currency.
- Settlement: Payment settlement is the completion of the transfer of funds between the relevant financial institutions or accounts.
