M5 CH12 - Clearing and Settlement Systems

Front

It pertains to how the transactions are handled in a net settlement system.

Back

Grouped and offset at the end of the day

Front

This system processes each transaction individually and in real time.

Back

Real-Time Gross Settlement (RTGS)

Front

Allows the electronic fund transfers between government agencies and the Bureau of the Treasury in the Philippines.

Back

BSP Electronic Fund Transfer Instruction System (EFTIS)

Front

It is what the PhilPaSSplus provides in the Philippine Payment and Settlement System.

Back

Real-time, gross settlement for peso transactions

Front

This happens if a check is dishonored (e.g., insufficient funds) during the clearing process.

Back

The drawee bank returns it to the presenting bank

Front

System that allows banks to process checks digitally instead of physically transporting them.

Back

Check Imaging and Clearing System (CICS)

Front

It pertains to how the use of a clearinghouse minimizes risk in check processing.

Back

By ensuring funds are available before transactions

Front

Its primary objective is to verify the transaction’s authenticity, ensure sufficient funds are available, and confirm the payment details.

Back

Clearing

Front

This is a benefit of clearing and settlement systems for companies wherein clearinghouses act as intermediaries between buyers and sellers, significantly reducing the risk of default.

Back

Risk mitigation

Front

A type of settlement which is temporary and subject to change, as it depends on certain conditions being fulfilled.

Back

Provisional