clearing bank

Definition

A commercial bank that is part of a network of banks that can clear checks for its clients regardless of whether or not the check originates from the same commercial bank. Clearing a check means processing it so that funds are deducted from the payer's account and put into the payee's account.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Popular 'Banking' Terms

negotiable
letter of credit
bank draft
bank
commercial bank

account
overdraft protection
compound interest
overdraft
lockbox

clearing bank in the news

Enter your email address to get our free Term of the Day newsletter!

Tools

clearing bank is ...

... part of the Banking subject.

Nearby Terms

clearance
clearance time
cleared date
cleared funds
clearing
clearing bank
clearing broker
clearing corporation
clearing firm
Clearing House Automated Payment System
Clearing House Interbank Payments System