Correspondent account is something that banks can not operate without

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 transactions. 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 outstanding appointment, etc. (under the debit of subaccount number 30102). Under the loan: loans issued in the interbank market, receipt of cash, transfer of tax amounts, commissions, etc.
• The accounts that the credit institution opens with other credit institutions (NOSTRO, are accounted for in sub-account No. 30110), and accounts that other banks open in this financial institution (LORO, sub-account 30109). They reflect not only the bank's own operations, but also a number of transactions of its customers.

Correspondent account is a link for building relationships with foreign banks. Banks can open their accounts with foreign credit institutions. The latter, in turn, can do the same in domestic financial institutions. In order to detail the accounting, correspondent accounts for transactions with precious metals are separately identified.

Correspondent account is the ability of the bank's accounting department to monitor the relationship with other credit organizations every minute, since analytical accounting assumes the division of operations across all correspondent banks. In order to comply with foreign exchange legislation, accounts of foreign banks are also allocated, which operate in Russian rubles ("K" and "H" accounts, reflected in 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 unit of the Bank of Russia or the Bank itself, it is opened after a commercial financial organization has received a certificate of state registration. In order to open a correspondent account in a foreign bank, it is necessary to send a set of strictly defined documents, most of which are subject to translation and appropriate assurance.

Correspondent account of the Savings Bank can vary for units in different cities. The first three digits in it are always 301, the next two are the number of the balance account (2nd order), then there are three digits, meaning the account currency (the Russian ruble has the 810 code). Then - one check digit, eight figures are reserved for the account code in the bank, and the last three coincide with the last three digits of the credit institution's BIC. For example, for the central office of Sberbank, the last figures of the correspondent account are 225, and for Baikal - 607.

Who else can have a correspondent account? The Bank of Russia concerns such issue as the opening of accounts of this kind for foreign national banks for the purpose of conducting operations in rubles and other currencies.