Daylight credit: Difference between revisions
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imported>Doug Williamson (Link with Daylight exposure page.) |
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An intra-day exposure of a bank when account is in an overdraft position at any time during the business day vis-à-vis credit extended for a period of less than one business day. | An intra-day exposure of a bank when account is in an overdraft position at any time during the business day vis-à-vis credit extended for a period of less than one business day. | ||
Daylight credit may be extended by central banks to even out mismatches in the settlement of payments. | Daylight credit may be extended by central banks to even out mismatches in the settlement of payments. | ||
In a credit transfer system with end-of-day final settlement, daylight credit is tacitly extended by a receiving institution if it accepts and acts on a payment order, even though it will not receive final funds until the end of the business day. | In a credit transfer system with end-of-day final settlement, daylight credit is tacitly extended by a receiving institution if it accepts and acts on a payment order, even though it will not receive final funds until the end of the business day. | ||
Also known as Daylight overdraft, Daylight exposure, or Intra-day credit. | Also known as Daylight overdraft, Daylight exposure, or Intra-day credit. | ||
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* [[Daylight exposure]] | * [[Daylight exposure]] | ||
* [[Payments and payment systems]] | * [[Payments and payment systems]] | ||
[[Category:The_business_context]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Cash_management]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Liquidity_management]] |
Latest revision as of 15:37, 1 July 2022
Credit transfer.
An intra-day exposure of a bank when account is in an overdraft position at any time during the business day vis-à-vis credit extended for a period of less than one business day.
Daylight credit may be extended by central banks to even out mismatches in the settlement of payments.
In a credit transfer system with end-of-day final settlement, daylight credit is tacitly extended by a receiving institution if it accepts and acts on a payment order, even though it will not receive final funds until the end of the business day.
Also known as Daylight overdraft, Daylight exposure, or Intra-day credit.