Correspondent Banking | Nostro, Vostro and Loro Accounts - Learn in 8 Mins

Nostro and Vostro accounts are the backbones of payment systems in the trade finance world. Understanding the concept of nostro, vostro and loro accounts is a basic requirement for everyone engaged in trade finance. But to understand that, the first concept is that of correspondent banking.
In this trade finance tutorial, we discuss -
1. What is Correspondent Banking?
2. Traditional Correspondent Banking
3. Nested Correspondent Banking
4. Why banks choose correspondent banking relationships?
5. Nostro Accounts
6. Vostro Accounts
7. Loro Accounts
8. Recent Developments - Correspondent Banking vs Blockchain based payment methods

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0:00 What is Correspondent Banking?
0:25 Traditional Correspondent Banking
2:13 Nested Correspondent Banking
2:49 Why banks choose correspondent banking relationships?
3:34 Nostro, Vostro and Loro Accounts
6:22 Recent Developments - Correspondent Banking vs Blockchain based payment methods

#nostro #vostro #payments

[ShuddhDesiBanking]

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[AB-bykv]

One of the best and simplest explanations possible.
Thanks

[RitikSingh-rpjy]

You made these concepts so easy to understand😄

[mags]

I finally understand the concept of nostro, vostro, loro. Sometimes it simply needs drawing pictures for visible illustration😅Thanks a lot

[MuhammadRamzan-rk]

No doubt best explanation with clarity and simplicity 👏👏👏

[gorilla-san]

Exactly the kind of video I was looking for. Awesome. Thanks

[antoar]

A very nice and informative explanation 🎉🎉

[aradhanavengurlekar]

Nicely explained. Your voice is soothing. God bless you Mam.

[shankarn]

Thank you madam... Kindly make a video on DROP-LINE OD

[harisonlineclassess]

Oh very nice explanation. Super. Thank u very much

[nikhil]

Thank you so much for this video! One of fundamental concept that any one dealing in cross border transactions should have complete understanding of! You have put it all in a very lucid manner! Thanks again! Do you have more tutorials on Swift messaging system?

[vspatil]

Could you please cover Supply chain finance madam..

[nitinrao]

Awesome
Questions # what is vostro of nostro??

[SURYABAHAD]

Very good, well researched keep your efforts like this in future tutorials too. Can you bring tutorials on third party payments allowed to exporters/importers.? The simple transactions are too easy but our banker colleagues are getting into traps of 3rd party payments, due to lack of control and fraudulent acts of parties. May God bless your all efforts

[gerardrocks]

Nice explanation. Can you go live and let us ask more questions . . Pls talk bout Mirror account and how payments work in trade payments

[vipul]

The first example is not the accurate, when the term correspondent comes it has to be middle bank in between 2 banks, how does bank has direct account relationship in a different countries, NOSTRO/VOSTRO account comes into the picture when there is a cross border payment, no bank in the world maintain relation with each and every bank and if you see swift message there is always a receiver and intermediary bank or beneficiary bank, so payment always route via receiver to intermiday/beneficiary.

Please Correct me if I am wrong.

[sonampatwa]

Loro a/c is client or borrower's a/c and not one banks a/c in another bank

[TekCroach]

I have a question. Can you send money (via swift or otherwise) to a bank’s nostro by another bank or person without a named beneficiary? Then they say the bank can transfer the amount manually to some account.

[kaviprasadnadar]

Ma'am some videos are in private mode....

[shwetharajanna]

Hi ma'am
Just wanted to know if loro and nested correspondent bankings are one and the same ?