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Nostro Account vs. a Vostro Account: Understanding the Difference

Nostro Account vs. a Vostro Account: An Overview

“Nostro” and “Vostro” are two different terms used to describe the same bank account. The terms are used when one bank has another bank’s money on deposit, typically in relation to international trading or other financial transactions.

Both banks in the venture must record the amount of money being stored by one bank on behalf of the other bank. The terms Nostro and Vostro are used to differentiate between the two sets of accounting records kept by each bank.

Nostro and Vostro are variations on the Latin words that mean “ours” and “yours,” respectively. Modern retail banking is derived from 13th and 14th century Italy, where both depositors and retail banks maintained ledgers of their account balances. The ledger kept by the depositing customer called it a Nostro ledger; the bank kept the corresponding Vostro ledger.


Nostro Account


Vostro Account


Nostro vs. Vostro Example


Key Takeaways