are vostro account balances insured 
vostro account balances are generally not insured by deposit insurance schemes since they represent liabilities of the respondent bank held on behalf of the correspondent bank however deposit insurance coverage may vary by jurisdiction so it s important to understand the applicable regulations and safeguards in your specific country the bottom linea vostro account is a bank account held by one bank on behalf of another bank typically in a foreign currency it allows respondent banks to provide services to their customers in foreign markets leveraging the local banking infrastructure of the respondent bank vostro accounts facilitate international trade correspondent banking relationships foreign currency transactions and access to local banking services 