Large Value Transfer System
- A system, being developed by the Canadian Payments Association, that is designed to settle large value payments, possibly $50,000 and over, at the central bank on a same-day basis.
Related Terms and Acronyms
- Bank of Canada (BC, BOC) — Company Est. 1935, Ottawa, Ontario, Canada, Important,
➥ Canada's central bank.
- Canada's central bank.
- Bank Rate — Definition,
- Closely related to the overnight rate, the bank rate is the interest rate the Bank of Canada charges to banks and other major financial institutions for one-day loans.
- Bank Wire — Definition,
- An electronic payment system for the transfer of money between banks.
- Canadian Payments Association (CPA) — Company, Canada,
- This association, which is composed of several financial institutions and the Bank of Canada, operates a national clearing system for financial institution payments.
- Central Bank — Definition,
- An institution that manages a nation's monetary policy.
- Clearing and Settlement (C&S) — Acronym,
- The process whereby banks collect or pay out for items drawn on or paid into accounts in their institution. This process enables banks to accept each other's cheques and bank drafts for deposit. The Canadian Payments Association operates Canada's clearing system.
- Electronic Data Interchange (EDI) — Acronym,
- EDI is a system that companies use to exchange business information electronically, virtually eliminating paperwork.
- International Banking — Definition,
- The operation of bank branches and subsidiaries located outside Canada. This area of banking also includes the supervision of correspondent banking relationships, foreign exchange trading, and trade finance.
- Overnight Rate — Definition,
- The interest rate banks use to lend or borrow funds from each other.
- Settlement Points — Definition,
- Regional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank.
- Society for Worldwide Interbank Financial Telecommunication (SWIFT) — Company,
- Global data processing system used by banks.