Daylight exposure and Deposit Guarantee Scheme: Difference between pages

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imported>Doug Williamson
(Create page. Sources: Daylight credit page & UK Money Markets Code April 2017: http://www.bankofengland.co.uk/markets/Documents/money/code/ukmoneymarketscode.pdf)
 
imported>Doug Williamson
m (Internal link added -30/10/13)
 
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1. ''Credit transfer''
(DGS).


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.  
A scheme that guarantees certain bank depositors' funds (subject to specified limits) should the bank fail.


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.
==See also==
 
* [[Too Big To Fail]]
Also known as Daylight overdraft, Daylight credit, or Intra-day credit.
 
 
2.
 
Any risk arising from timing differences between the settlement of transactions during a business day.
 
 
== See also ==
* [[Credit]]
* [[Payments and payment systems]]
* [[Settlement]]

Revision as of 16:54, 30 October 2013

(DGS).

A scheme that guarantees certain bank depositors' funds (subject to specified limits) should the bank fail.


See also

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