Another important point in the article is that cash is typically not transferred, but instead (basically) “your account at my bank is credited equal to the amount that you debit from my account at your bank”
If I want to wire you some cash from bank A to bank B, my bank (A) will debit my account,and credit their account (called a nostro). There, we have two possibilities :
* The two banks are connected (meaning B has an account in A), A will debit their nostro and credit the account of B in A (called a loro) and inform bank B via swift. B will debit the account of A in B, credit their nostro, debit their nostro and credit your account
* The two banks are not directly connected : A will debit my account and credit their nostro. They will then debit their nostro and credit the account of a third institution (another bank or a clearing house). They will send a message to the bank B and the third institution, telling them that the cash should be credited to you. If the bank B and the third institution are connected, see above. If not, the process goes on, until the cash "reaches" bank B.
This is highly simplified, but it's the principle.
https://en.wikipedia.org/wiki/Nostro_and_vostro_accounts
the loro is used when a third bank is in the process or however is not as common as the two above.
https://www.investopedia.com/ask/answers/051815/what-differe...
As I said, Nostro is also used for own accounts. The account refleting the position of the bank (its own money and assets, not the money or assets deposited by its clients) is also called a nostro, at least in Europe.