Bilateral Credit Limit

Business, Legal & Accounting Glossary

Definition: Bilateral Credit Limit


Bilateral Credit Limit


Full Definition of Bilateral Credit Limit


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.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/bilateral-credit-limit/
Modern Language Association (MLA):
Bilateral Credit Limit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 06, 2021 https://payrollheaven.com/define/bilateral-credit-limit/.
Chicago Manual of Style (CMS):
Bilateral Credit Limit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/bilateral-credit-limit/ (accessed: December 06, 2021).
American Psychological Association (APA):
Bilateral Credit Limit. PayrollHeaven.com. Retrieved December 06, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/bilateral-credit-limit/

Definition Sources


Definitions for Bilateral Credit Limit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.