Gridlock Resolution in Interbank Payment Systems

@article{Bech2001GridlockRI,
  title={Gridlock Resolution in Interbank Payment Systems},
  author={Morten L. Bech and Kimmo Soram{\"a}ki},
  journal={Journal of Financial Abstracts eJournal},
  year={2001}
}
The paper analyses the severity of gridlocks in interbank payment systems operating on a real time basis and evaluates by means of simulations the merits of a gridlock resolution algorithm. Data used in the simulations consist of actual payments settled in the Danish and Finnish RTGS systems. The algorithm is found to be applicable to a real time environment and effective in reducing queuing in the systems at all levels of liquidity, but in particular when intra-day liquidity is scarce. 

Liquidity , gridlocks and bank failures in large value payment systems

During the last few decades, most industrialised countries have introduced real-time gross settlement (RTGS) systems for the settlement of large, timecritical interbank payments. In RTGS systems,

Gridlock Resolution in Payment Systems

During the last few decades, most industrialised countries have introduced real-time gross settlement (RTGS) systems for settlement of large, time-critical inter-bank payments. Denmark was among the

Liquidity, risks and speed in payment and settlement systems: a simulation approach

This publication consists of eleven separate studies on payment and settlement systems conducted using simulation techniques. Most have been carried out using the payment and settlement system

Systemic risk in the Danish interbank netting system

Central banks have become increasingly worried about systemic risks to the financial market and infrastructure stemming from payment systems. Failure to settle by a participant in a netting system

Systemic Risk in the Danish Interbank Netting System

Central banks have become increasingly worried about systemic risks to the financial market and infrastructure stemming from payment systems. Failure to settle by a participant in a netting system

Liquidity Risk in the Payment Systems of China

This paper empirically analyses the interbank payment flows of real-time gross settlement systems (RTGS) of China using BoF-PSS2 simulator which is developed by Bank of Finland, and studies the

Simulating Interbank Payment and Securities Settlement Mechanisms with the Bof-Pss2 Simulator

The simulation technique provides a new means for analysing complex interdependencies in payment and securities settlement processing. The Bank of Finland has developed a payment and settlement

Funding Levels for the New Accounts in the BOJ-NET

The Bank of Japan decided to implement the next-generation RTGS project of the BOJ-NET Funds Transfer System. Under the project, the new system will have liquidity-saving features and will

A duality theory of payment systems

References

SHOWING 1-10 OF 15 REFERENCES

Efficient algorithms for the clearing of interbank payments

Intraday liquidity needs in a modern interbank payment system: A simulation approach

In this study three topics in particular are analysed.First, the adequacy of intraday credit limits in the existing and planned Finnish interbank funds transfers systems are studied.Secondly, the

Optimizing Liquidity Usage and Settlement Speed in Payment Systems

The operating speed of a payment system depends on the stage of technology of the system's communication and information processing environment. Frequent intraday processing cycles and real-time

The Timing and Funding of Fedwire Funds Transfers

An examination of the Federal Reserve's Fedwire Funds Transfer service reveals that the highest concentration of funds-transfer value occurs in the late afternoon. The authors attribute this activity

Payment System Settlement and Bank Incentives

In this paper we consider the relative merits of net versus gross settlement of interbank payments. Net settlement economizes on the costs of holding non-interest-bearing reserves but increases moral

'Alternative liquidity management features in an RTGS environment'

  • Bank of Finland Working Paper,
  • 2000

Alternative liquidity management features in an RTGS environment'', Bank of Finland Working Paper