IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Liquidity Saving Mechanisms in Payment Systems and Settlement Liquidity: The Experience of Japan's Next-Generation RTGS Project

Liquidity Saving Mechanisms in Payment Systems and Settlement Liquidity: The Experience of Japan's Next-Generation RTGS Project
View Sample PDF
Author(s): Masashi Nakajima (Reitaku University, Japan)
Copyright: 2016
Pages: 25
Source title: Analyzing the Economics of Financial Market Infrastructures
Source Author(s)/Editor(s): Martin Diehl (Deutsche Bundesbank, Germany), Biliana Alexandrova-Kabadjova (Banco de México, Mexico), Richard Heuver (De Nederlandsche Bank, The Netherlands) and Serafín Martínez-Jaramillo (Banco de México, Mexico)
DOI: 10.4018/978-1-4666-8745-5.ch012

Purchase


Abstract

Payment systems are one of the key Financial Market Infrastructures (FMIs) and have showed remarkable progress over the past two decades. The first half of this chapter focuses on the evolutionary process of payment systems, starting with the Deferred Net Settlement (DNS) system and progressing to the Real-Time Gross Settlement (RTGS) system. Subsequently, much more sophisticated payment systems have been put in place, which include the “Hybrid System,” and the “RTGS system with Liquidity Saving Mechanism (LSM).” In the latter half of this chapter, experience from the “Next-Generation Real-Time Gross Settlement” (RTGS-XG) project of BOJ-NET is discussed. BOJ-NET is the large-value payment system operated by Bank of Japan (BOJ). BOJ-NET added an LSM in 2008 and became an RTGS system with LSM. The impact of the LSM's introduction is analyzed, which includes the liquidity-saving effect, the average waiting time in the queue, the turnover ratio, and the volume of idle liquidity.

Related Content

. © 2022. 15 pages.
. © 2022. 12 pages.
. © 2022. 15 pages.
. © 2022. 13 pages.
. © 2022. 37 pages.
. © 2022. 52 pages.
. © 2022. 15 pages.
Body Bottom