CHIPS
Business & Finance abbreviation · Banking
| Stands for | Clearing House Interbank Payments System |
|---|---|
| Categories | Business & Finance |
CHIPS stands for Clearing House Interbank Payments System, a banking abbreviation.
Private US system for large-value dollar payments between banks, operated by The Clearing House, which nets payments continuously and finalizes them the same day. It handles a large share of cross-border US dollar transactions.
Example: The correspondent bank routed the dollar payment through CHIPS before crediting the beneficiary in New York.
Usage notes
CHIPS processes on the order of $1.8 trillion a day, rivaling the Federal Reserve's Fedwire service. Launched in 1970, it uses a liquidity-saving algorithm so banks can settle large volumes with relatively little prefunded money. The Clearing House is owned by large commercial banks.
Related abbreviations
More banking abbreviations
- CBDC – Central bank digital currency
- CD – Certificate of deposit
- CDD – Customer due diligence
- CET1 – Common Equity Tier 1
- CFT – Countering the financing of terrorism
- CHAPS – Clearing House Automated Payment System
- Chq – Cheque
- CIP – Customer identification program
- CRA – Community Reinvestment Act
- CRR – Cash reserve ratio
- CTR – Currency transaction report
- CU – Credit union