12 Dec 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. We are also pleased to offer you the opportunity to obtain additional income from funds invested in the Bank of Belarus (subject to an additional agreement to the corresponding account contract). The central element of the service is the placement of funds available in the form of a non-reducible balance on the account corresponding to an interest rate (interbank rate) higher than that provided in the corresponding account contract. For more information, please contact your Relationship Manager. There is also the idea of a Loro account (“sound”) which is a registration of an account held by a second bank on behalf of a third party; That is, my registration of your account with you. In practice, this use is rarely used, the main exception being the complex financing of the consortium. 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 to account for funds received by foreign financial institutions and contracted for the refinancing of prematurely repaid foreign loans. The Vostro accounts of non-resident banks can be opened in both the Russian ruble and the foreign currency. When an agreement is reached, the participating banks agree on the currency of the settlements, the possibility and conditions of the overdraft (a short-term loan granted by debit of the overdraft of the balance) and the maintenance conditions of the Vostro account (nostro).
To open a correspondence account with OJSC Keremet Bank, it is necessary: a Nostro account is a reference used by Bank A to refer to “our” bank account B. Nostro is an ephemeral way of talking about “our money deposited with your bank”. The deposited money is then transferred from Citibank via SWIFT to GTBank`s US dollar account in Nigeria. SWIFT refers to the Society for Worldwide Interbank Financial Telecommunications, a corporate cooperative that provides secure financial transactions to its members. At the end of the transfer, GTBank receives the dollar-denominated funds, converts them into national currency, i.e. the naira, and deposits them into the local accounts of the beneficiaries. The two banks of the company must account for the amount that is stored by one bank on behalf of the other. The terms Nostro and Vostro are used to distinguish the two sets of accounting documents held by each bank. The terms nostro and vostro are mainly used by banks when a bank holds money in another bank (on a correspondence account often called the Nostro or Vostro account). Both banks must keep records of the amount of money kept by one bank in the name of the other.
To distinguish the two data sets from the same balance and a set of transactions, banks designate accounts as nostro and vostro. From the point of view of the bank, whose money is held in another bank: OJSC Keremet Bank offers the opening and maintenance of correspondence accounts in Kyrgyz KGS (for local banks), the Russian ruble, the US dollar, the euro and other currencies under flexible terms of service, depending on the requirements of the counterparty bank, with advantageous rates for account-keeping and execution. If you would like to open an LORO account or enter into a master contract on the terms and conditions of interbank transactions, please contact the financial institution at 375 (17) 309-00-89, 309-03-40 or e-mail email@example.com. 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.