Limited recourse and Net credit/debit position: Difference between pages
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''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 == | == See also == | ||
* [[ | * [[Credit]] | ||
* [[ | * [[Debit]] | ||
* [[ | * [[Netting]] | ||
Revision as of 08:24, 11 April 2015
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.
