Daylight credit: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Punctuation) |
imported>Doug Williamson (Linked to The Treasurers Handbook - Payments and payment systems) |
||
Line 8: | Line 8: | ||
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]] | ||
* [[Payments and payment systems]] |
Revision as of 16:38, 29 November 2014
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.