Payments netting

Reducing fund transfers between affiliates to only a netted amount. Netting can be done on a bilateral basis (between pairs of affiliates), or on a multi-lateral basis (taking all affiliates together). The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • payments netting — Reducing fund transfers between affiliates to only a netted amount. Netting can occur on a bilateral basis (between pairs of affiliates ), or on a multi lateral basis (taking all affiliates together). Bloomberg Financial Dictionary …   Financial and business terms

  • Netting — This page is about the finance term. For the fabric called netting see Net (textile). In general, netting means to allow a positive value and a negative value to set off and partially or entirely cancel each other out. In the context of credit… …   Wikipedia

  • Clearing House Interbank Payments System — The Clearing House Interbank Payments System (CHIPS) is the main privately held clearing house for large value transactions in the United States, settling well over US$1 trillion a day in around 250,000 interbank payments. Together with the… …   Wikipedia

  • multilateral netting — 1) A method of reducing bank charges in which the subsidiaries of a group offset their receipts and payments with each other, usually monthly, resulting in a single net intercompany payment or receipt made by each subsidiary to cover the period… …   Accounting dictionary

  • multilateral netting — 1) The centralizing of international payments of a group of companies so that payments and receipts in different currencies can be offset, thus reducing transaction and hedging costs. 2) A method of reducing bank charges in which the subsidiaries …   Big dictionary of business and management

  • master netting agreement — USA An agreement that permits netting of amounts owed under transactions governed by different agreements, often including one or more ISDA Master Agreements. Master netting agreements take different forms and may permit netting of payments to be …   Law dictionary

  • Bilateral Netting — The process of consolidating swap agreements between two parties into a single agreement. As a result, instead of each swap agreement leading to a stream of individual payments by either party, all of the swaps are netted together so that only… …   Investment dictionary

  • bilateral netting — A method of reducing bank charges in which two related companies offset their receipts and payments with each other, usually monthly. In this way a single payment and receipt is made for the period instead of a number, which saves on both… …   Accounting dictionary

  • bilateral netting — 1) An agreement between two counterparties that mutual obligations will be settled by a single payment. 2) A method of reducing bank charges in which two related companies offset their receipts and payments with each other, usually monthly. In… …   Big dictionary of business and management

  • Clearing House Interbank Payments System - CHIPS — The primary clearing house in the U.S. for large banking transactions. CHIPS settles over 250,000 of trades per day, valued in excess of $1 trillion. CHIPS and the Fedwire funds service used by the Federal Reserve Bank combine to constitute the… …   Investment dictionary

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