expression

clearing house

an institution that settles transactions between banks

In more detail

1. (noun) a financial institution or system that processes and settles transactions between banks or other financial organizations

2. (noun) a central place or organization that collects and distributes information or goods

Examples

1. The clearing house ensures that all checks are processed and payments are made between banks.
2. The website acts as a clearing house for job listings from multiple employers.

How to use clearing house

Clearing house is used in financial contexts to describe institutions that handle transaction settlements between banks, or more broadly for any central organization that collects and distributes information or materials. It conveys the idea of a neutral middleman that processes exchanges efficiently and transparently.

Common phrases

clearing house for information
clearing house for goods
banking clearing house
operate as a clearing house
serve as a clearing house

Synonyms

settlement system · intermediary · central repository · hub · exchange

Word family

clear (verb) · clearance (noun) · clearing (noun)

A common mistake

Learners sometimes confuse clearing house with clearing bank; clearing banks are individual institutions that participate in clearing systems, while clearing houses are the systems or organizations that facilitate the clearing process itself.

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