Nostro account vs Vostro account: what is the difference?
They are the same account seen from two sides. To the bank that owns the money it is a nostro, our account with you. To the bank that holds it on its books it is a vostro, your account with us.
| Nostro account | Vostro account | |
|---|---|---|
| In one line | Nostro account means an account a bank holds with another bank, usually abroad and in foreign currency. Nostro is Latin for 'ours': the owner sees it as 'our account with you'. | Vostro account means an account a bank maintains on its own books for another bank. Also called a loro account, it is 'your account with us' from the holding bank's side. |
| Read more | Nostro account | Vostro account |
How they work together
A payment company funding payouts abroad usually cares about the nostro view: how much of its money sits at each bank and partner, in which currency, right now.
Where Polynopsis fits
Polynopsis reads nostro balances from bank statement files such as BAI2, MT940 and camt.053 into the same position as partner and wallet balances.
Polynopsis takes the account holder's view: it reads the balances a payment company holds at banks and partners, whichever side's books they sit on, into one position.
Frequently asked questions
What is the difference between nostro account and vostro account?
They are the same account seen from two sides. To the bank that owns the money it is a nostro, our account with you. To the bank that holds it on its books it is a vostro, your account with us.
What is Nostro account?
Nostro account means an account a bank holds with another bank, usually abroad and in foreign currency. Nostro is Latin for 'ours': the owner sees it as 'our account with you'.
What is Vostro account?
Vostro account means an account a bank maintains on its own books for another bank. Also called a loro account, it is 'your account with us' from the holding bank's side.
Sources
- Balances on nostro and vostro accounts (from IMF External Debt Statistics: Guide for Compilers and Users) · UN ESCWA, citing the International Monetary Fund
- Correspondent banking · ACT Wiki, Association of Corporate Treasurers
- Liquidity bridges across central banks for cross-border payments · Committee on Payments and Market Infrastructures, Bank for International Settlements
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator