Payment Systems , Inside Money and Financial Intermediation 1

  • Ouarda Merrouche Bank of England Erlend
  • Published 2009
We assess the impact of introducing an e¢ cient payment system on …nancial intermediation. Two channels are investigated. Innovations in wholesale payments technology enhance the security and speed of deposits as a payment medium for customers and therefore a¤ect the split between holdings of cash and holdings of deposits. Second, innovations in wholesale… CONTINUE READING