Agreement to limit payments that New York Clearing House Interbank Payments System (CHIPS) member banks are willing to accept from each other to limit intraday credit risk. When payments are sent from one bank to another in CHIPS, the settlement takes place at 4:30pm each day - until settlement occurs, the banks are at risk if the paying bank is financially unable to meet its payment obligation.
Related information about bilateral credit limit:
- Bilateral Credit Limit Definition | Investopedia
Intraday credit limits set by two institutions for use with one another, usually within a large clearing system that operates by netting amounts due to and due from ...
- Bilateral Credit Limit - Financial Dictionary - The Free Dictionary
The credit limit two banks extend to each other for securities trades that occur during a single day. That is, one bank may only borrow from the other up to the ...
- Bilateral Credit Limit: Definition from Answers.com
Bilateral Credit Limit Agreement by member banks in the Clearing House Interbank Payments System (Chips) in New York to limit the payments they are willing.
- bilateral credit limit Definition | Business Dictionaries from ...
bilateral credit limit. agreement by member banks in the Clearing House Interbank Payments System (CHIPS) in New York to limit the payments they are willing ...
- What is bilateral credit limit? definition and meaning
Definition of bilateral credit limit: Agreement to limit payments that New York Clearing House Interbank Payments System (CHIPS) member banks are willing to ...
- What is credit limit? definition and meaning
Mentioned in these terms. bilateral credit limit. Browse by Letter: #ABCDEFGHIJK LMNOPQRSTUVWXYZ. Resources. Browse by subject · Tips · Answers ...
- What is bilateral facility? definition and meaning
bilateral facility. bilateral credit limit · bilateral trade. Definition. A type of arrangement for lending to a single borrower, or a facility in the banking industry for ...
- bilateral credit noun - definition in Business English Dictionary ...
Risks may be controlled centrally by obliging a participant to establish a bilateral credit limit with every other participant. (Definition of bilateral credit noun from ...