Vostro Account Law and Legal Definition
Vostro account is an account that a bank holds on behalf of another bank in another country. The term is most common in the United States and the United Kingdom. In United States, it is a dolor account in a domestic bank which is owned by a foreign correspondent bank. For example, a Mexican bank wishing to facilitate payments to its United States creditors would maintain a United States dollar account with a correspondent bank in Texas.
Vostro in latin means “for yours”. Vostro account is also known as a loro account. For the foreign bank it is a nostro account.
