Overdraft Credit

A situation in which a bank allows an account holder to spend more than is currently in the account. Overdraft credit may be attached to accounts automatically, though usually it requires payment of an NSF fee.

References in periodicals archive ?

After accounting for the payments made by the extension of overdraft credit from the Federal Reserve System and those made by the receipt of incoming transfers from other banks, we assign the remaining payments to banks' maintained account balances at the Federal Reserve.

THE TIMING AND FUNDING OF FEDWIRE FUNDS TRANSFERS

In 1994, for example, direct measures of daylight overdrafts show that the Federal Reserve extended about $50 billion in intraday overdraft credit on average during the day (table 1); and on any given day an average of about 2,400 institutions incurred daylight overdrafts in their accounts at the Federal Reserve out of a total of nearly 11,000 institutions with such accounts.

Daylight overdraft fees and the Federal Reserve's payment system risk policy

The result is that overdraft credits to the Greek central bank have grown by nearly E1 billion a day in recent months.

New beginning for Greece

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