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J. Mon. Ec. 2011, 6(1): 151-160 Back to browse issues page
Intraday Liquidity Demand of Banks in Real-Time Gross Settlement System
Mehrdad Sepahvand
Deputy director for research at Iran Banking Institute
Abstract:   (2017 Views)

In this study a simulation analysis is applied to address the change in banks liquidity demand due to a shift in settlement method brought about by adopting Real Time Gross Settlement System. At the first stage of this research, we use a data generator model along with some information on the time distribution of coded cheques over a working day in order to produce intraday flow of payments. Then the output is fed to the Bank of Finland Payment Settlement Simulator (BoF-PSS) to estimate banks intraday liquidity needs in Satna. The results indicate the movement towards a real time gross-settlement system increases the liquidity demand of Iranian banks in payment system by about 66 percent. 

JEL classification: C15, C70, E58, G21, G35 

Keywords: RTGS, liquidity, model, interbank
Full-Text [PDF 331 kb]   (678 Downloads)    
Type of Study: Research | Subject: Monetary Economics
Received: 2014/04/30 | Accepted: 2014/04/30 | Published: 2014/04/30
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Sepahvand M. Intraday Liquidity Demand of Banks in Real-Time Gross Settlement System. J. Mon. Ec.. 2011; 6 (1) :151-160
URL: http://jme.mbri.ac.ir/article-1-67-en.html

Volume 6, Issue 1 (Fall 2011) Back to browse issues page
Journal of Money and Economy Journal of Money And Economy
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