Bank Clearing

Bank Clearing

The process of settling transactions between banks. Because so many transactions take place between banks on a given day, bank clearing exists to process what each party owes or is owed in a central location so the least amount of money actually changes hands. For example, suppose Bank A owes $1 million to Bank B in cleared checks, but Bank B owes Bank A $1.5 million. Bank clearing is the process of determining that Bank B must only pay Bank A $500,000.
References in periodicals archive ?
It matters not whether bank A or bank B, because they balance their accounts out between themselves every evening, called bank clearing.
Leach introduced in April), which would enhance the Federal Reserve's authority to oversee clearing organizations that choose to be regulated as uninsured state member banks and would clarify the treatment of bank clearing organizations (including those overseen by the OCC) in bankruptcy.
A teenage clerk stole pounds 15,000 from a bank clearing house which had 120 CCTV cameras and was 'more secure than a prison', a court heard yesterday.
Endorsements and bank clearing stamps are important portions of the check that establish that the proper payee actually received the intended distribution of trust account funds.
Club spokesman Anthony Simmons said: "Twig's efforts with peg building, stocking, bank clearing, matches, bailiffing and contributions as a vice-president to committee meetings enabled the association to continue making strong progress when other clubs were falling by the wayside.
It is a separate contract from the south bank clearing work awarded to Paul Paquette and Sons, which is based in Chetwynd.
All shareholders of bearer shares which are already registered for example through the normal bank clearing system or held in a securities account do not need to act.
This "payment gateway" software must pass stringent testing by Bacs, the organisation which operates the UK bank clearing network.
No, the mood of doom and gloom amongst some IT experts these days centre on the automated bank clearing system Bacs.
But the bank clearing system means that although the funds show as cleared, the con will only be revealed several weeks after the cash was sent.
6m from a van outside the Midland Bank Clearing Centre in Salford, Manchester, in July 1995.
The state of Hawaii, where checks must be physically transported between islands by plane for bank clearing, provides a perfect example of why traditional check-clearing is not cost efficient.