How does the Central Bank act as a Clearing House?
The ECCB provides a clearinghouse facility where all banks meet daily to present cheques and offset claims and debts against each other. For example, you might have deposited a cheque from someone with an account at RBTT Bank into your Scotiabank account. When the officers from the different banks meet for the clearings Scotiabank returns the cheque to RBTT Bank, who in turn pays Scotiabank. The settlement takes place using the commercial banks accounts at ECCB, so no money actually changes hands.
