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.
46 Citations
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