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Article: Small Clearing Houses Hunt For Relevance.(bank clearinghouses)(Industry Overview)
- Article from:
- American Banker
- Article date:
- July 21, 2004
- Author:
CopyrightCOPYRIGHT 2004 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In the early 1800s, New York banks would clear checks between themselves by sending runners to hand-deliver the items.
The couriers eventually began to meet each other mid-way to exchange items on a corner, giving birth to the idea of a local clearing house.
But today, most checks are settled through national clearing agencies, and the local clearing house has taken on a less visible role in the banking system.
As the industry adopts electronic image exchange systems, which will allow banks to settle transactions almost instantly, geography is becoming increasingly irrelevant in check processing. And the bankers who run local clearing houses ...