In banking, "CC" can refer to several things, depending on the context. Let's explore the most common meanings:
1. Cash Credit (CC)
This is a short-term loan provided by a bank to a company. It allows the company to withdraw funds from a designated account up to a pre-approved limit, without needing to maintain a positive balance. Think of it as a revolving line of credit specifically designed for businesses. [Source: Corporate Finance Institute, Federal Reserve Board]
- Key Features:
- Short-term financing.
- Pre-approved borrowing limit.
- No requirement for a minimum credit balance.
2. Regulation CC (Expedited Funds Availability Act)
This refers to a regulation implemented by the Federal Reserve Board in the United States. Regulation CC dictates how quickly banks must make deposited funds available for withdrawal. This ensures customers can access their money in a timely manner, regardless of the deposit method (cash, check, electronic transfer). [Source: Federal Reserve Board, Investopedia, NCUA]
- Key Aspects:
- Governs funds availability timelines.
- Aims to reduce risk for banks.
- Includes exceptions for certain deposit types.
It's crucial to understand the context in which "CC" is used to interpret its meaning accurately. The meaning will depend heavily on whether the discussion relates to business financing or consumer banking regulations.
