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Clearing house
 

 

1. Any institution that settles mutual indebtedness between a number of organizations. 2. The London Bankers' clearing house sets all claims among its members (i.e. cheques paid into banks other than those upon which they are drawn) against one another, and each day a balance is struck and the differences in total indebtedness paid by cheque on the Bank of England. The clearing house is _ situated off Lombard Street near all the main London offices of the clearing banks. Similar institutions exist in other countries, e.g. the New York clearing house. There is also a settlement department at the Stock Exchange which matches final buyers and seilers of" stocks known as actively traded clearing siocks.

Reference: The Penguin Dictionary of Economics, 3rd edt.