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

Morten L. Bech (), James Thompson Edward Chapman () and Rod Garratt ()

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)
New Economics Papers: this item is included in nep-ban, nep-cba and nep-mac
Date: 2008
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Working Paper: Which bank is the "central" bank? an application of Markov theory to the Canadian Large Value Transfer System (2008)
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