Daylight credit: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson (Layout.) |
||
| (5 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
''Credit transfer.'' | ''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. | 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. | ||
== See also == | == See also == | ||
* [[Credit]] | * [[Credit]] | ||
* [[Daylight exposure]] | |||
* [[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.
