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 ?
The bank, which found an increasing trend of fraud on cash cheques presented through clearing across the UAE, has decided to discontinue the practice of accepting cheques through the Central Bank clearing system effective September 1, 2017, wherein the beneficiary name is mentioned as 'Cash', the bank said.
Hence, to eliminate the possible risk and fraud involved in 'Cash' cheques and thereby protecting your funds and interests, it has been decided to discontinue the practice of accepting cheques through the Central Bank clearing system effective September 1, 2017, wherein the beneficiary name is mentioned as 'Cash'", the bank said in a statement on its website.
Tenders are invited for excavating the existing rock ledges and embankment to widen the existing roadway, reconstructing the roadside ditch, placing geotextile and suitable fill in eroded/slipped bank areas, minor bank clearing, grubbing and grading, placing riprap rock protection, installing erosion and sediment control measures, installing guiderail, resurfacing the roadway, replacing existing and installing additional crosspipes for ditch drainage and site restoration.
It actually takes longer for the funds to become collected than the bank clearing it for you to make disbursements against.
However, in the meantime it has bank clearing facilities in place to allow it to continue operationally.
This "payment gateway" software must pass stringent testing by Bacs, the organisation which operates the UK bank clearing network.
The Singapore Exchange (SGX) has added investment bank UBS to its AsiaClear platform as a new SGX bank clearing member, allowing it to clear OTC traded financial derivatives in the country for the first time.
With the addition of Credit Suisse, we now have a total of 10 bank clearing members that are active in the OTC traded financial derivatives.
At the collecting bank clearing centre the cheque information is passed electronically through a secure data exchange network (called the Inter Bank Data Exchange, IBDE) to the appropriate paying bank clearing centre.
The letter said her details were passed to NatWest Bank clearing centre, which would deal with the payment for the catalogue, but adds "despite telephone calls and correspondence" the payment had not reached its destination.
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.
It highlighted the fact that Clearstream refused to supply to Euroclear Bank clearing and settlement services for registered shares issued under German law.