Settlement and treasury

Correspondent Banking, Nostro and Vostro, and Settlement

Correspondent banking relationships, nostro and vostro accounts, interbank settlement, pay-through accounts

72 questions · 15 topics

Clearing Banks Correspondent Banking Relationships Correspondent Tie-Ups Dollar Access Ledgers Money Plumbing (How Money Moves)Nested Accounts Netting Nostro Accounts Pay-Through Accounts Respondent Banks Settlement Accounts Settlement Models USD Clearing Vostro Accounts

Do large banks and institutions have enough physical cash to handle multi-billion-dollar cash transactions (e.g., cash-based M&A), or is it mostly an accounting mechanism?Dec 16, 2025Money Plumbing (How Money Moves)How does the US government send money to other countries—by check, bank transfer, or cash?Dec 16, 2025Money Plumbing (How Money Moves)I want to get into the remittance business for Nigeria – how do I get started?Oct 27, 2025Money Plumbing (How Money Moves)How does Correspondent Banking work?Oct 21, 2025Correspondent Banking Relationships Do we need a correspondent tie-up agreement, if there is a licensed financial entity involved, like an exchange, or another Money Services Business?Oct 21, 2025Correspondent Tie-Ups Are international financial institutions still necessary today?May 9, 2023Money Plumbing (How Money Moves)Can settlement funds be redirected to a bank account in a country different from the payout country?Feb 1, 2023Settlement Accounts Would a US Bank Account (Nostro) via Fedwire be held in a foreign country? Would that be classified as Nostro accounts?Jan 18, 2023Nostro Accounts What is considered a nested transaction?Jan 3, 2023Correspondent Banking Relationships What is the difference between a Nostro account and a Vostro account?Jan 2, 2023Correspondent Banking Relationships How do international banks physically settle balances between each other?May 11, 2022Money Plumbing (How Money Moves)How is money transferred between domestic and international bank accounts instantly when no physical cash moves?Jul 12, 2021Money Plumbing (How Money Moves)Are international money transfers truly instant?Jul 7, 2021Money Plumbing (How Money Moves)In correspondent banking, who sets FX rates and who profits from them?Dec 2, 2020Correspondent Banking Relationships Do all banks rely on intermediary banks for international wire transfers?Nov 4, 2020Money Plumbing (How Money Moves)What role do US banks play in international money transfers?Jul 7, 2020USD Clearing Can correspondent agreements include more than two money transfer parties?Jun 10, 2020Correspondent Tie-Ups Which is better for African correspondent banking: Turkey or the UAE?Jun 10, 2020Correspondent Banking Relationships Which types of bank transactions are classified as international?Jan 1, 2020Money Plumbing (How Money Moves)How do correspondent banking relationships work in remittances?Nov 12, 2019Correspondent Banking Relationships What’s the difference between a settlement bank and a remitting bank?Nov 3, 2019Money Plumbing (How Money Moves)How are transactions worth over a billion dollars executed in practice?Oct 4, 2019Money Plumbing (How Money Moves)Why must non-US transactions often clear through US banks?Sep 9, 2019USD Clearing Is there a system that ensures global bank transfers net to zero?Aug 3, 2019Money Plumbing (How Money Moves)Where does the money used for transfer payments actually come from?Apr 6, 2019Settlement Models How is TransferWise able to process international transfers so quickly?Jan 9, 2019Money Plumbing (How Money Moves)Is there a global authority that oversees and regulates international wire transfers?Dec 6, 2018Money Plumbing (How Money Moves)How do remittances physically move money (as opposed to just account balances)?Aug 1, 2018Money Plumbing (How Money Moves)Where do currency exchange businesses get the currency they sell?May 4, 2018Money Plumbing (How Money Moves)What are nostro and vostro accounts, and how are they used in banking settlements?Jun 6, 2017Nostro Accounts What exactly is a correspondent bank account?Mar 5, 2017Correspondent Banking Relationships In a modern banking era, why are wire transfers still limited over weekends and take multiple days?Sep 9, 2016Money Plumbing (How Money Moves)How do banks settle foreign-currency transactions—what mechanisms and steps are used?Jul 1, 2016Money Plumbing (How Money Moves)How do debit and credit transactions flow between two different banks?Jun 2, 2016Money Plumbing (How Money Moves)How are nostro and vostro accounts reconciled?Jun 2, 2016Nostro Accounts During an IBAN wire transfer (sender bank → correspondent → recipient), what manual verification steps do humans perform?Jun 1, 2016Money Plumbing (How Money Moves)How does one country lend money to another—do they transfer it electronically, ship it physically, or is it just accounting entries?Apr 10, 2016Money Plumbing (How Money Moves)How do interbank and cross-country money transfers work?Mar 3, 2016Money Plumbing (How Money Moves)How do banks settle international payments internally?Jan 5, 2016Money Plumbing (How Money Moves)What does a bank need to offer foreign-currency sub-accounts to customers?Sep 11, 2015Correspondent Banking Relationships Is it possible to transfer foreign currency between two local bank accounts in another country, and if so how, or why not?Aug 4, 2015Money Plumbing (How Money Moves)Where are national bank accounts actually held?Jul 3, 2015Money Plumbing (How Money Moves)How do countries repay debts worth millions, and is the money moved electronically or physically?Jun 11, 2015Money Plumbing (How Money Moves)How does International ACH function?Apr 11, 2015Money Plumbing (How Money Moves)If you could redesign SWIFT today, what would you change and how would you build it?Apr 7, 2015Money Plumbing (How Money Moves)How can I legally build a multi-currency NS/RTGS system based on banks’ current accounts?Apr 6, 2015Money Plumbing (How Money Moves)How do banks move money between themselves?Apr 5, 2015Money Plumbing (How Money Moves)Are all U.S. dollar transactions routed through the United States?Apr 4, 2015USD Clearing In simple terms, why do banks maintain nostro accounts with other banks?Mar 9, 2015Nostro Accounts How do international bank-to-bank transfers function end to end?Feb 11, 2015Money Plumbing (How Money Moves)