Transit money (transmitted credit)

Money that a bank receives from a third party – usually from a public sector body – with the instruction to pass it on to a specific payee (credit which originates from an other lender and is passed through the banking system merely for reasons of expediency and security). The bank charges a transit margin for this and for the monitoring of the debtor, which is usually also the responsibility of the institution. – See transit money, integration loan, loan, transitory, refinancing loan.

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