RELATED CONCEPT
Nostro Account
A nostro account is a bank account held by a domestic financial institution at a foreign correspondent bank in the currency of that foreign country.
FINANCIAL INFRASTRUCTURE CONCEPT
Vostro Account
A vostro account is an account that a servicing financial institution maintains on behalf of a foreign correspondent bank in the domestic currency.
Architectural context & analysis
Expressed from the servicing bank perspective (literally 'your money held by us'), it mirrors the foreign institution nostro relationship.
The servicing bank provides access to domestic real-time gross settlement systems, processing incoming payment instructions subject to regulatory screening and available funding.
Worked operational scenario
A New York commercial bank manages a USD vostro account for a Swiss private bank, enabling the Swiss bank to execute domestic US wire transfers.
Implementation considerations & controls
Implement real-time intraday credit monitoring and automated sanctions screening before crediting or debiting vostro sub-ledger journals.
CONCEPTUAL RELATIONSHIPS
Related concepts
RELATED CONCEPT
Correspondent Banking
Correspondent banking is an arrangement where one banking institution (the correspondent) provides deposit, payment, currency clearing, and fiduciary services to another institution (the respondent).
RELATED CONCEPT
Audit Trail
An audit trail is a chronological, immutable, tamper-evident record of all system events, user actions, data modifications, and security decisions occurring across an infrastructure.
AN INFORMED NEXT STEP
Establish clear operational parameters for Vostro Account.
Start with your architecture, integration boundaries and operational requirements.