Very few people have likely heard of Nostro-Vostro accounts, yet they are crucial to the global mechanics of the Eurodollar system and an essential part of the financial architecture.
Hi, thank you for your valuable posts. I have one question regarding the following section of “Global Systemically Important Banks (G-SIBs) with subsidiaries in the U.S. and offshore parent entities do not depend on Nostro-Vostro accounts, as they can move funds within their own balance sheet without needing a correspondent bank.” How exactly are these banks able to move funds from their onshore parent to foreign branches accounting-wise? Is it simply through use of due from / due to entries in the same manner as fund transfers between domestic branches of these banks? Do you also cover accounting of these transactions in your book? Thank you very much
Hi, thank you for your valuable posts. I have one question regarding the following section of “Global Systemically Important Banks (G-SIBs) with subsidiaries in the U.S. and offshore parent entities do not depend on Nostro-Vostro accounts, as they can move funds within their own balance sheet without needing a correspondent bank.” How exactly are these banks able to move funds from their onshore parent to foreign branches accounting-wise? Is it simply through use of due from / due to entries in the same manner as fund transfers between domestic branches of these banks? Do you also cover accounting of these transactions in your book? Thank you very much