The effects of the introduction of the intraday credit transfer

In Hungary, the overwhelming majority of credit transfers have been executed in the course of the day since July 2012. In the past half year, the new system operated reliably, without any trouble. The central clearing of transactions is typically performed within 10 minutes, and almost all transactions are executed within 2 hours, i.e. the transferred amount is credited to the beneficiary’s account within this time span. Experiences of the first half year suggest that the management of the liquidity needed for the settlement of intraday credit transfers also does not cause any problems for banks. According to our calculations, in line with our preliminary expectations, banks implemented only negligible hikes in their fees in connection with the introduction of the intraday credit transfer. The new system also offers advantages that will have favourable effects over the medium and long terms as well. These favourable effects include an expected increase in competition among banks and the hoped wide spreading of automation from customer to customer.