Loro Account Agreement

Nostro and Vostro are variations of Latin words that mean « our » or « you. » Modern retail banking originated in Italy in the 13th and 14th centuries, where depositors and retail banks managed the balances of their accounts. The customer-led Ledger called it a Nostro-Ledger; The bank kept the corresponding Vostro ledger. Let`s see an example. GTBank, Nigeria, receives a lot of money from the United States in the form of remittances to its home clients. Because GtBank does not have a physical presence in the United States, it enters into an agreement with Citibank, which has a remote open account for GTBank in U.S. dollars. In this way, money received by U.S. customers and businesses that send money to GTBank account holders in Nigeria will be deposited into GTBank`s account with Citibank. A Vostro account is a record of money held by a bank or owed to a bank by a third party (an individual, a company or a bank). Today, FNBA sells at least AUD$1,000,000 to C (a counterparty that has an AUD account in FNBA and an EN USD account at CMB) for a net consideration of $2,000,000. In its own accounting system, THE FNBA will provide the following information: a Vostro account is required to account for funds held by foreign banks and registered in the accounts of Russian credit institutions, as well as for payments of non-financial goods made by foreign financial institutions for the early refinancing of foreign loans.

The Vostro accounts of non-resident banks can be opened in both the Russian ruble and the foreign currency. The Nostro account is the bank`s data set that pays money to another bank. These accounts are often used to facilitate the settlement of commercial and foreign exchange transactions. Nostro accounts are different from standard demand and deposit bank accounts, as they are generally held by financial institutions and are denominated in foreign currency. We offer you to provide wide possibilities provided by the main bank of the Republic of Belarus to meet your needs for payments in BYR and open currency via the LORO correspondence accounts in the books of the Bank of Belarus. Nostro and Vostro (from Italian, Nostro and Vostro; English, « our » and « your » are accounting terms that are used to distinguish an account for another company from an account that another company holds. The companies involved are usually banks. Banks in the United Kingdom or the United States often make a Vostro account on behalf of a foreign bank.

The Vostro account is managed in the currency of the country where the money is on bail. With the advent of computer accounting, Nostros and Vostros must have only opposite signs within a bank`s accounting system; that is, if a Nostro has a positive sign in credit, a Vostro in credit must have a negative sign. This allows you to vote by adding all accounts to zero (a trial balance) – the fundamental condition of double accounting. [1] Vostro is the term used by Bank B, in which bank A money is on deposits. Vostro is a reference to « your » and refers to « your money deposited in our bank. » A Vostro account is like any other bank-managed account. The account is a record of money owed to a third party, usually another bank, or managed by it, but it can be either a business or an individual. If C does not have a direct account with the corresponding FNBA bank, the funds can be transferred within the banking system of country B by cheque or in any form of electronic transfer.