Definition of Fedwire:
The Fedwire system is an electronic funds transfer system used by banks, businesses, and government agencies for large, same-day transactions. According to the Federal Reserve, about 7,300 participants conducted Fedwire transactions in 2008. Banks that use the system include depository financial institutions (FI) in the U.S., as well as the American branches of certain foreign banks or government groups, provided they maintain an account with a Federal Reserve Bank.
Fedwire refers to a real-time gross settlement system of central bank money used by Federal Reserve Banks (the Fed) to electronically settle final U.S. dollar payments among member institutions. The system processes trillions of dollars daily and includes an overdraft system that covers participants with existing and approved accounts. Along with Fedwire, the Fed operates two other payment systems: The Fedwire Securities Service and the National Settlement Service.
The Federal Reserve computer system that is used to transfer reserve account balances and U.S. government securities. See Culpeper Switch.
How to use Fedwire in a sentence?
- Fedwire is a real-time gross settlement system of central bank money used by Federal Reserve Banks to transfer funds electronically between member institutions.
- Banks, businesses, and government agencies use Fedwire for large, same-day transactions.
- Fedwire settles transactions individually and immediately, and once settled they are final and irrevocable.
Meaning of Fedwire & Fedwire Definition