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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https://youtu.be/7gfg_LN6-YI
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