Update

Related Content

More Like This

Show all results sharing these subjects:

  • Social sciences
  • Economics

GO

Show Summary Details

Overview

multilateral netting


Quick Reference

1 The centralizing of international payments of a group of companies so that payments and receipts in different currencies can be offset, thus reducing transaction and hedging costs.

2 A method of reducing bank charges in which the subsidiaries of a group offset their receipts and payments with each other, usually monthly, resulting in a single net intercompany payment or receipt made by each subsidiary to cover the period concerned. This saves both on transaction costs and paperwork. See also bilateral netting; netting.

Subjects: Social sciencesEconomics


Reference entries