Predicting payment migration in Canada

نویسندگان

چکیده

Canada has two core payment systems for processing funds transfers between financial institutions: the Large Value Transfer System (LVTS) and Automated Clearing Settlement (ACSS). These will be replaced in next few years by three new systems: Lynx, Optimization Engine (SOE) Real-Time Rail (RTR). We employ historical LVTS ACSS data use discrete choice demand estimation approach to uncover end users’ institutions’ preferences when deciding which instruments systems, respectively, use. Based on estimated revealed, we conduct various counterfactual analyses predict volume value shares of future systems. The results show that small-value payments likely migrate SOE. Also, short run, about CA$10 000 billion per year is anticipated RTR if not subject maximum transaction values. migration patterns raise important policy questions, such as whether should caps and/or higher collateral requirements.

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ژورنال

عنوان ژورنال: The journal of financial market infrastructures

سال: 2021

ISSN: ['2049-5404', '2049-5412']

DOI: https://doi.org/10.21314/jfmi.2021.003