What is a clearing bank?
Q: What is a clearing bank?
A: A clearing bank is a financial institution that facilitates the movement of money between accounts and issues money to customers.
Q: What does clearing mean in the context of banking and finance?
A: Clearing refers to all activities from the time a commitment is made for a transaction until it is settled.
Q: What is the process of clearing in banking and finance?
A: The process of clearing turns the promise of payment (e.g. in the form of a cheque or electronic payment request) into the actual movement of money from one account to another.
Q: What is the official name of clearing banks in the UK?
A: The official name of clearing banks in the UK is Cheque and Credit Clearing Company.
Q: What is the role of the Federal Reserve in the US?
A: The Federal Reserve in the US performs an intermediary role, clearing and settling international bank payments.
Q: Did clearing bank originally involve physical cash?
A: Yes, at one time clearing bank meant taking in and giving out actual money.
Q: What does clearing mean now in banking and finance?
A: Now, clearing means any kind of financial transaction.
