Net credit/debit position

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.

See also

• Credit
• Debit
• Netting