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clearing bank

 

Definitions from the Web

Clearing Bank

A clearing bank refers to a financial institution, typically a commercial bank, that facilitates the clearing and settlement of financial transactions between banks and their customers.

Meaning

  • Noun: A bank responsible for clearing and settling financial transactions.

Usage

  • Sense 1: As a noun referring to a financial institution.

Sample Sentences

  1. The role of a clearing bank is vital in ensuring secure and efficient transaction settlements.
  2. When the payment is made, the clearing bank will verify and complete the transaction.
  3. The clearing bank acts as an intermediary, streamlining the process of transferring funds between banks.

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