Correspondent Bank
A correspondent bank provides services such as payments, clearing, settlement, and foreign access for another financial institution.
Correspondent bank, correspondent banking, respondent bank, loro account, and vostro account terms.
Correspondent and account relationship terms describe how one bank holds accounts for, or provides services to, another bank. This branch covers correspondent banks, correspondent banking, respondent banks, loro accounts, and vostro accounts.
Use these pages when the account relationship controls payment routing, settlement evidence, cross-border access, fees, compliance duties, or bank counterparty exposure.
| Term | Use it for |
|---|---|
| Correspondent Bank | A bank providing account or payment services to another bank. |
| Correspondent Banking | The broader correspondent-bank service relationship. |
| Respondent Bank | The bank using services from a correspondent bank. |
| Vostro Account | An account held by one bank on behalf of another bank. |
| Loro Account | Third-bank account reference terminology in correspondent banking. |
Start with whose account is being described. Nostro, vostro, and loro language depends on perspective, so the same balance can be described differently by different banks.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
A correspondent bank provides services such as payments, clearing, settlement, and foreign access for another financial institution.
Arrangement where one bank provides payment, clearing, settlement, or account services for another bank.
Loro Account is an account held by a bank on behalf of another bank, representing third-party funds and facilitating interbank transactions.
A respondent bank uses a correspondent bank to access payment, settlement, clearing, foreign exchange, or account services.
A vostro account is an account a correspondent bank holds on behalf of a foreign respondent bank in the correspondent bank's currency or jurisdiction.