Clearing House Interbank Payments System

Definition

CHIPS. A privately-held transferral system that allows banks to settle transactions with each other electronically. It primarily deals with large-value fund transfers, with daily totals of more than $1 trillion. CHIPS is used for transactions that are less time-sensitive, contrary to the Federal Reserve Wire Network, and has fewer members making transfers. It settles transactions by netting.
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real-time gross settlement system bilateral credit limit