Banking Clearinghouses - Company Profiles

Banking Clearinghouses

By Kelley Keith A bank clearinghouse functions as an intermediary between financial institutions. For example, Bank A has a multitude of debits written on the accounts of Bank B and vice versa. Rather than sending each transaction separately, both Bank A and B will use an interbank clearinghouse to bundle these transactions to make the system more efficient. The use of a banking clearinghouse exists in most every city with more than two banks.If ... Read more