Liquidation refers to the settlement and accounting of funds generated from mutual business dealings between banks. General banks settle the balance through the People's Bank of China, and some even settle the balance on a case-by-case basis.

For example, a customer of ABC handles the electronic remittance business of 100 yuan and remits the money to ICBC (in fact, the liquidation information message arrives at ICBC, and ICBC can keep an account). At this time, the business you handle is called settlement; Then the People's Bank of China will transfer the reserve fund of Agricultural Bank of China 100 yuan to ICBC, and this is the settlement of funds.