Lesson 3 · Practitioner · Global · 22 min
Nostro, Vostro & Settlement Mechanics
How correspondent banking accounts move money internationally and where settlement breaks appear in product journeys.
Objectives
- ▸Define nostro vs vostro from each bank’s perspective
- ▸Trace a cross-border payment through correspondent chains
- ▸Anticipate value-dating, fees, and repair codes
- ▸Specify product states for ‘sent / accepted / settled / failed’
A nostro (‘our’) account is your bank’s account held with a correspondent in foreign currency. A vostro (‘your’) account is the correspondent’s view of an account you hold with them. Same account, two labels depending on who is speaking.
Memory hook
Nostro = our money at their bank. Vostro = their view of our account on their books.
Key terms
NostroVostroCorrespondent bankSWIFTValue dateSettlement