Business, Legal & Accounting Glossary
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.
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This glossary post was last updated: 20th November, 2021 | 0 Views.