Analyzing Alternative Intraday Credit Policies in Real-Time Gross Settlement Systems

Intraday Liquidity Demand of Banks in Real-Time Gross Settlement System

In this study a simulation analysis is applied to address the change in banks liquidity demand due to a shift in settlement method brought about by adopting Real Time Gross Settlement System. At the first stage of this research, we use a data generator model along with some information on the time distribution of coded cheques over a working day in order to produce intraday flow of payment...

Real Time Gross Settlement Systems: An Overview

Intraday Liquidity in Gross Payment Systems

The purpose of this paper is to make a comparative analysis of modern gross payment systems, emphasizing on the implications of the availability of intraday liquidity and the different mechanisms used to provide this liquidity. The possibility of default and the risk of the intraday credit are first introduced to determine the implications of its existence on banks’ behaviour and on the probabi...

Intraday liquidity management in gross settlement system as a coordination game

Real time gross settlement systems (RTGS-systems) operated by central banks are the predominant form of large value payment systems. They allow execution of fund transfers between central bank accounts of commercial banks and other financial institutions as a continuous process by settling payments individually, with their full value and with immediate finality. Because individual payments are ...

Payment system reform in New Zealand – the start of real time gross settlement

From March 1998, the inter-bank settlement of most high value wholesale payments in New Zealand will occur on a real time gross settlement (RTGS) basis. This means that the interbank transfer of funds associated with each such payment will be posted to the exchange settlement accounts of the paying and receiving banks at the Reserve Bank, transaction by transaction, irrevocably and ahead of val...