Correspondent account is something without which banks cannot work

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Correspondent account is a necessary requisite for settlements between credit institutions. The totality of these accounts is reflected in the bank balance on account number 301 with subsequent detailing depending on the type of operations. Among them are the following:

• Accounts that a commercial bank opens with the Bank of Russia. It reflects contributions to the authorized capital, received interbank loans, amounts of unexplained purpose, etc. (on the debit of sub-account number 30102). For a loan: issued loans in the interbank market, receiving cash, transferring tax amounts, commissions, etc.
• Accounts that a credit institution opens with other credit institutions (NOSTRO, accounted for on sub-account No. 30110), and accounts that other banks open with this financial institution (LORO, sub-account No. 30109). They reflect not only the bank's own operations, but also a number of transactions of its clients.

Correspondent account is a link for building relationships with foreign banks. Banks can open their accounts inforeign credit institutions. The latter, in turn, can do the same in domestic financial institutions. Correspondent accounts for operations with precious metals are allocated separately for the purpose of detailing accounting.

Correspondent account is the ability of the bank's accounting department to monitor relationships with other credit institutions every minute, since analytical accounting involves the division of operations among all correspondent banks. In order to comply with currency legislation, accounts of foreign banks that conduct operations in Russian rubles are also allocated (accounts of type “K” and “H”, reflected on sub-accounts 30122 and 30123).

Correspondent account is, in fact, a twenty-digit number, each digit in which has a strictly defined value. In the territorial division of the Bank of Russia or the Bank itself, it opens after the commercial financial organization has received a certificate of state registration. In order to open a correspondent account in a foreign bank, you need to send a set of strictly defined documents, most of which are subject to translation and appropriate certification.

Sberbank correspondent account may vary for departments in different cities. The first three digits in it are always equal to 301, the next two are the balance account number (2nd order), followed by three digits indicating the account currency (the Russian ruble is coded 810). Next - one check digit,eight digits are reserved for the bank account coding, and the last three digits match the last three digits of the BIC of the credit institution. For example, for the central office of Sberbank, the last digits of the correspondent account are 225, and for Baikal - 607.

Who else can have a correspondent account? The Bank of Russia is concerned with such an issue as opening accounts of this kind for foreign national banks in order to conduct operations in rubles and other currencies.