Capital settlement, also known as capital settlement in English, is the transfer of funds between financial institutions, the transfer of payment settlement funds, and the settlement of resulting fund deposits.
Central bank fund clearing is a fund transfer and clearing business between commercial banks undertaken by the central bank. The clearing business in a region is undertaken by the branches of the central bank in that region; when the scope is extended to the whole country, it is undertaken by the head office of the central bank. When the central bank handles this business, it will inevitably require commercial banks to open deposit accounts at the central bank's clearing center, which constitutes an important liability business of the central bank.
The interbank fund clearing is the clearing of funds transferred between the People's Bank of China and specialized banks and between specialized banks. National interbank transactions were originally handled exclusively by the People's Bank of China.
Foreign exchange fund settlement is the fund settlement carried out by commercial banks for the settlement of claims and debts arising from import and export trade and other economic transactions.
Accounting treatment of liquidated fund transactions
1. This account accounts for the liquidation of funds in business transactions between enterprises (banks).
2. This subject can be accounted for in details according to the fund transaction units, such as "intra-city bill clearing" and "credit card clearing".
3. Main accounting processing of intra-city bill clearing business.
4. For other clearing business that occurs, the clearing funds received will be debited to "Amounts deposited with the Central Bank" and other accounts, and this account will be credited; when clearing funds are transferred, opposite accounting entries are made.
5. The debit balance at the end of this account reflects the liquidation funds receivable by the enterprise; the credit balance at the end of this account reflects the liquidation funds payable by the enterprise.