• Reducing transfers of funds between subsidiaries or separate companies to a net amount.

• Is a process used by institutions and clearinghouses to determine the marginal risks and demands for funds.


Follow this link for all the terms related to net.

 Embedded terms in definition
 Referenced Terms
 Mortgage backed securities clearing corporation: A wholly owned subsidiary of the Midwest Stock Exchange that operates a clearing service for the comparison, Netting, and margining of agency-guaranteed MBSs transacted for forward delivery.

 Payments netting: Reducing fund transfers between affiliates to only a netted amount. Netting can be done on a bilateral basis (between pairs of affiliates), or on a multi-lateral basis (taking all affiliates together).

 Reinvoicing center: A central financial subsidiary used by an MNC to reduce transaction exposure by having all home country exports billed in the home currency and then reinvoiced to each operating affililate in that affiliate's local currency. It can also be used as a Netting center.

 Related Terms
 Exposure netting
Intracompany netting technique
Netting out
Payments netting

<< Net worth Netting out >>

Helping Disabled or Elderly Relatives With Money Management, Even From Far Away: Millions of people serve as financial caregivers for ill or elderly spouses, parents, children or other loved ones. They perform services that include paying bills, handling deposits and investments, filing insurance claims and preparing taxes. Because this role can be costly and physically and emotionally exhausting, especially for a caregiver who lives far away or has the usual time-demands, FDIC Consumer News offers some suggestions. More...

If you achieve success, you will get applause, and if you get applause, you will hear it. My advice to you concerning applause is this; enjoy it but never quite believe it. Robert Montgomery


Copyright 2009-2018 GVC. All rights reserved.