Fed funds and Netting centre: Difference between pages

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''US Banking''.
An essential part of a multilateral netting system.
Funds deposited by commercial banks at Federal Reserve Banks, including funds in excess of bank reserve requirements.  
 
The netting centre acts as a counterparty to all of the participants in the multilateral netting system.
 
In a group of companies, the netting centre is usually operated by the central or regional treasury centre.
 
 
The netting centre typically handles all foreign exchange exposures as well as foreign exchange trading.


Banks may lend federal funds to each other on an overnight basis at the federal funds rate to help the borrowing bank satisfy its reserve requirements or liquidity needs.


== See also ==
== See also ==
* [[Federal Reserve Bank]]
* [[Counterparty]]
* [[Federal Reserve System]]
* [[Multilateral netting]]
* [[Multilateral net settlement system]]
 
* [[Netting]]
* [[Payments and payment systems]]

Revision as of 08:16, 24 May 2015

An essential part of a multilateral netting system.

The netting centre acts as a counterparty to all of the participants in the multilateral netting system.

In a group of companies, the netting centre is usually operated by the central or regional treasury centre.


The netting centre typically handles all foreign exchange exposures as well as foreign exchange trading.


See also