An agreement under which one bank provides payment and other services to another bank. Payments through correspondents are often made through reciprocal accounts (so-called nostro and loro accounts), on which credit lines may be established. Correspondent banking services are primarily provided across national borders, but national agency relationships are also known. A loro account refers to an account held by a correspondent for the benefit of a foreign bank; a foreign bank, on the other hand, holds a so-called nostro account for the benefit of a domestic bank.