Net credit/debit position: Difference between revisions
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* [[Debit]] | * [[Debit]] | ||
* [[Netting]] | * [[Netting]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Cash_management]] | |||
[[Category:Liquidity_management]] | |||
Latest revision as of 16:16, 24 March 2020
Netting systems.
A participant’s net credit or net debit position in a netting system is the sum of the value of all the transfers the participant has received up to a particular point in time, minus the value of all the transfers the participant has sent.
If the difference is positive, the participant is in a net credit position.
If the difference is negative, then the participant is in a net debit position.
The net credit or net debit position at settlement time is defined as the net settlement position.
These net positions may be calculated on a bilateral or multilateral basis.
