In a bilateral netting system, transactions between the parent and a subsidiary or between two subsidiaries are consolidated over a specific period of time.

Question

Quizplus · Accepted Answer

In a bilateral netting system, transactions between the parent and a subsidiary or between two subsidiaries are consolidated over a specific period of time, resulting in a single net amount that is settled between the parties. This helps to reduce the number of transactions and the associated costs and risks.

In a Bilateral Netting System, Transactions Between the Parent and a Subsidiary