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Kiting (2)
KITING (2)

Definition: (Banking) Practice of depositing checks in various, usually distant banks, to keep balances available or to cover checks with uncollected amounts.
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* All five elements should be in.


1. Purposeful and necessary to adopt style.

2. Needed financial discipline will be ensured.

3. Customers or depositors suffer no loss therefrom.

4. Costs will not be a drain on bank's capital.

5. Actions achieve goal(s) (see definition).
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See perfect CORPORATE GOVERNANCE.
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See perfect CLEARING HOUSE (1).

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