Net settlement

Net settlement

A net settlement is the process by which banks calculate the collective total of all transactions on any given day.[1] Credit and debit transactions are recorded on the clearing house books throughout the business day; final settlement of the net transactions, the credits less the debits, occurs when funds due to a bank are credited to its reserve account by a Federal Reserve Bank.

References

  1. ^ http://www.investopedia.com/terms/n/net-settlement.asp

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