Vostro = Loro account
What Does Vostro Account Mean?
The account a correspondent bank, usually U.S. or UK, holds on behalf of a foreign bank. Also known as a loro account.
What Does Nostro Account Mean?
A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts are used to facilitate settlement of foreign exchange and trade transactions. The term is derived from the Latin word for "ours." Conversely, accounts that are held by the domestic bank in its home country for foreign banks are called vostro accounts, derived from the Latin word for "yours."
Loro accounts
(1) An ISO term. An account serviced by a bank on behalf of an account owner bank. (2) An account held by a bank in our books on behalf of another (=correspondent) bank. In principle, a liability account representing balances maintained with the reporting entity for another bank. (3) Loro accounts are also known as "vostro accounts" and "due to accounts".
