Bilateral credit refers to the act of directly granting the other party a certain trading credit line in the foreign exchange market. When two institutions conduct business, bilateral credit limits can be set, which is to reduce the credit risk between finished institutions, ensure the overall stability of the payment system, and prevent institutions from failing to perform their duties.

Bilateral credit line, that is, the agreed intra-day credit line, generally exists in the large-value clearing system for daily settlement of the net payables and receivables of institutions. Among banks, the inter-bank payment system of clearing bank of America is the most famous net settlement and clearing system.