 An Intraday Liquidity MarketMarco Rossi
Chapter 6 in Payment Systems in the Financial Markets, 1998, pp 107-124 from Palgrave Macmillan Abstract: Abstract The planned introduction of RTGS systems in Europe is likely to raise a series of policy issues concerning the provision of intraday liquidity. The current operation of the principal large-value net payment systems allows for the creation of large volumes on intraday credit amongst its members. Having previously introduced a number of interim measures to restrict the scale of the credit risks created by the functioning of the system — for instance, limits on credit exposures in CHAPS were introduced in 1992 and similar restrictions operate in CHIPS — central banks thought it necessary to move to a settlement system that eliminated credit risk. Under the proposed RTGS systems, any payment instruction must first be notified to the central bank and will be allowed to proceed only if the paying bank has sufficient funds in its RTGS settlement account held at the central bank. This is, indeed, the case for the new RTGS system in the UK which replaced CHAPS in April 1996. Keywords: Interest Rate; Monetary Policy; Central Bank; Interbank Market; Fund Market (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-26374-5_6 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-26374-5_6 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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