Template:Combination of accounts capsule

The banker’s right to combine accounts arises where a customer has multiple bank accounts, some of which are in debit and some in credit. It is sometimes balled a Banker’s set-off but, in 1972’s (still leading) case National Westminster Bank Ltd v Halesowen, Lord Buckley noted iot isn’t a set off right so much as a function of accounting:

“Nor is it a set-off situation, which postulates mutual but independent obligations between the two parties. It is an accounting situation, in which the existence and amount of one party’s liability to the other can only be ascertained by discovering the ultimate balance of their mutual dealing.” the combination of accounts.

Combination of accounts is arguably available in any situation where one party has multiple accounts with another in one currency. Some questions arise when they are in different currencies.