The Reform of Wholesale Payment Systems and its Impacton Financial Markets

Dirk Schoenmaker, Peter Garber and D. Folkerts-Landau

No 1996/037, IMF Working Papers from International Monetary Fund

Abstract: This paper reviews the ongoing efforts to reduce the risks inherent in the world’s principal wholesale payment systems. The paper assesses the major policy proposals to contain the growth in intraday credit exposures that arises in net settlement wholesale payment systems and in the real-time gross systems in which the central bank provides daylight overdrafts. It also discusses the benefits of these risk-management policies, and we assess the adverse impact of applying interest charges for intraday central-bank credit or of collateralizing such credit on liquidity in financial markets.

Keywords: WP; government securities; settlement system; payment system; money market; payment flow; securities transaction; opportunity cost; RTGS payment system; payment pattern; payment system liquidity; system liquidity; payment traffic; treasury securities; payment system charge; payments problem; Payment systems; Real time gross settlement systems; Securities; Collateral; Europe; Global (search for similar items in EconPapers)
Pages: 54
Date: 1996-05-01
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Citations: View citations in EconPapers (16)

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