Which Bank is the "Central" Bank? An Application of Markov Theory to the Canadian Large Value Transfer System

Morten Bech (), James Chapman and Rodney Garratt

Staff Working Papers from Bank of Canada

Abstract: We use a method similar to Google's PageRank procedure to rank banks in the Canadian Large Value Transfer System (LVTS). Along the way we obtain estimates of the payment processing speeds for the individual banks. These differences in processing speeds are essential for explaining why observed daily distributions of liquidity differ from the initial distributions, which are determined by the credit limits selected by banks.

Keywords: Payment; clearing; and; settlement; systems (search for similar items in EconPapers)
JEL-codes: C11 E50 G20 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2008
New Economics Papers: this item is included in nep-ban, nep-cba and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp08-42.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bca:bocawp:08-42

Access Statistics for this paper

More papers in Staff Working Papers from Bank of Canada 234 Wellington Street, Ottawa, Ontario, K1A 0G9, Canada. Contact information at EDIRC.
Bibliographic data for series maintained by ().