Daylight credit: Difference between revisions
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imported>Doug Williamson m (Spacing) |
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''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. | ||
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== See also == | == See also == | ||
* [[Credit]] | * [[Credit]] | ||
Revision as of 13:32, 5 August 2013
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.
