The clearing system is the relevant institution or affiliated institution that serves the system. Usually it is a third-party paid clearing service outside two independent clearing systems.
The financial payment and settlement system recognizes that the settlement institution is the "heart" of the securities market. At the same time, dollar settlement actively protects the rights and interests of settlement institutions as special legal persons from the legal level. In particular, settlement in US dollars should stipulate that settlement participants, as beneficiaries of settlement business, have corresponding obligations to maintain the normal operation of settlement institutions.
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Creditor's rights, debts and accounts receivable and payable between financial institutions are transferred and liquidated through the lending records of the central bank's current account. Inter-bank settlement needs to be carried out through the inter-bank payment system, which provides fund settlement services for the settlement matters entrusted by the bank itself and customers.
Central banks in different countries provide payment and clearing services in different ways and scope, but their business operation principles are basically the same. In order to use the payment and clearing services of the central bank, financial institutions need to open a current account with the central bank. The central bank usually requires financial institutions to keep a certain amount of reserves in their accounts to ensure the smooth payment.
The fund settlement process includes two basic procedures. One is that the paying bank sends payment information to the receiving bank through the payment system; The second is to realize the transfer of funds between the paying bank and the receiving bank. According to the different treatment methods of transferred funds, inter-bank clearing can be divided into two types: differential clearing system and full clearing system.