Nostro Account

Nostro accounts, along with vostro and loro accounts, are terms used in correspondent banking. Correspondent banking refers to the inter-relationships that banks maintain between themselves throughout the world to facilitate trade and payments. To expedite trade, correspondent banks will have foreign currency accounts with each other, giving them access to global and multi-currency capabilities to assist clients. A nostro account (i.e. our account) is how Bank A describes its account with Bank B. Bank B, in return, refers to Bank A’s nostro account as its vostro account (i.e. your account).