Generally, a current account between two contracting parties, whereby they – defer their mutual claims (grant respite for mutual claims), – offset them against each other at contractually agreed intervals, and – then settle the balance by payment. – In particular, on the part of the bank, the transfer of money to a business customer (for private customers, this is more commonly referred to as an overdraft facility) without the customer having to apply for a loan in each case. The customer can dispose of the account as needed in varying amounts up to the agreed maximum limit (bank account from which withdrawals are allowed without any restriction on frequency or amount, so long as there is a credit balance). The settlement of incoming and outgoing payments is made at certain intervals – usually monthly – together with the calculation of interest. – Overdrawing the account is usually less expensive than using a credit line by way of a credit card. – See book credits, overdraft facility, epoch, framework credit, account, current, overdraft, overdraft fee. – For the level of overdraft fees, see the annex “Euro area statistics,” section “Financial markets,” subheading “Interest rates on loans to households,” column “Overdraft facility” in the respective ECB Monthly Bulletin.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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