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:
“The history of literature—take the net result of Tiraboshi, Warton, or Schlegel,—is a sum of a very few ideas, and of very few original tales,—all the rest being variation of these.”
—Ralph Waldo Emerson (1803–1882)
“I always consider the settlement of America with reverence and wonder, as the opening of a grand scene and design in providence, for the illumination of the ignorant and the emancipation of the slavish part of mankind all over the earth.”
—John Adams (1735–1826)