A net settlement is the process by which banks calculate the collective total of all transactions on any given day. Credit and debit transactions are recorded on the clearing house books throughout the business day; final settlement of the net transactions, the credits less the debits, occurs when funds due to a bank are credited to its reserve account by a Federal Reserve Bank.
Famous quotes containing the words net and/or settlement:
“A man’s whole life is taxed for the least thing well done. It is its net result.”
—Henry David Thoreau (1817–1862)
“[The Settlement House] must be grounded in a philosophy whose foundation is on the solidarity of the human race, a philosophy which will not waver when the race happens to be represented by a drunken woman or an idiot boy.”
—Jane Addams (1860–1935)
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