Reporting in the case of nostro/vostro accounts
Section 3.4.1 of Part II of the AnaCredit Manual states that debit balances (i.e. cash deposited by the reporting agent) are subject to AnaCredit reporting. Could you please confirm that a nostro/vostro account should be reported if it is in debit, but not reported otherwise? Furthermore, could you please explain how exactly (i.e. as which type of instrument) a nostro/vostro account should be reported to AnaCredit?
A nostro/vostro account is a bank account where one bank has another bank’s money on deposit, typically on behalf of a foreign bank in relation to international trade or other financial transactions. This also involves deposit overdrafts, whereby depositors are authorised to obtain funding in the form of an overdraft. The terms “nostro” and “vostro” are used to indicate which bank has money on deposit.
It is true that a nostro/vostro account is only subject to AnaCredit reporting if, on the reporting reference date, the account’s balance is such that the reporting agent has a claim on the other institution – i.e. it is the reporting agent’s money that is on deposit in the account (“nostro”).
If, however, the account’s balance on the reporting reference date is such that the other institution has a claim on the reporting agent – i.e. it is the other institution’s money that is on deposit in the account (“vostro”) – the account is not subject to AnaCredit reporting. Please refer to Section 4.6.1 of Part I of the AnaCredit Manual for more information about instruments recorded on the liabilities side of the balance sheet.
As the balance of a nostro/vostro account can change from one reporting reference date to another – changing, for example, from “nostro” to “vostro” and back again – the account is not subject to AnaCredit reporting on all reporting reference dates.
Nostro/vostro accounts should be reported to AnaCredit as “deposits other than reverse repurchase agreements”, unless the reporting agent has a claim on an institution which is not an MFI or the money is deposited in relation to reverse repurchase agreements (in which case, they should be reported as “other loans” and “reverse repurchase agreements” respectively).
 Please note that outstanding claims arising from overdrawn deposit accounts should be classified as loans or deposits, regardless of whether the depositor intentionally created the overdraft or inadvertently had insufficient funds in the account.