Please Help: foreign exchange
Posted Date : 13-Jun-2012 , 04:18:16 pm | Posted By Amit Kumar Kamboj
What is Loro Account.
Category : Finance | Answers : 1 | Comments : 0 | Hits : 335
Answers
Answer By: CA Satuti Mahajan
Loro Account:
An account held by a domestic bank in itself on behalf of a foreign bank.The latter in turn would view this account as a Nostro account. A Loro is our account of their money, held by you. Loro account is a record of an account held by a second bank on behalf of a third party; i.e, my record of their account with you. In practice this is rarely used, the main exception being complex syndicated financing.
An account held by a domestic bank in itself on behalf of a foreign bank.The latter in turn would view this account as a Nostro account. A Loro is our account of their money, held by you. Loro account is a record of an account held by a second bank on behalf of a third party; i.e, my record of their account with you. In practice this is rarely used, the main exception being complex syndicated financing.
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