Correspondent Banking
Correspondent banking is an ongoing relationship in which one bank provides accounts, payments, clearing, settlement, or other services to another bank.
Correspondent banking and nostro, vostro, and loro account perspectives used in payments, settlement, and bank relationship controls.
Correspondent and account relationship terms describe how one bank holds accounts for, or provides services to, another bank. This branch separates the service relationship from the perspective-based account labels used on each bank’s books.
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 Banking | The ongoing relationship in which a correspondent provides accounts, payments, clearing, credit, or market access to a respondent bank. |
| Nostro, Vostro, and Loro Accounts | The account-owner, account-provider, and third-bank perspectives used to describe interbank balances. |
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.
Correspondent banking is an ongoing relationship in which one bank provides accounts, payments, clearing, settlement, or other services to another bank.
Nostro, vostro, and loro describe correspondent-bank accounts from the viewpoints of the account owner, account provider, or a third bank.