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Persistent link: https://www.econbiz.de/10013070565
We build a network formation game of firms with trade flows to study the adoption and usage of a new digital currency as an alternative to correspondent banking. We document endogenous heterogeneity and inefficiency in adoption outcomes and explain why higher usage may correspond to lower...
Persistent link: https://www.econbiz.de/10014562909
secured format and communication channels. These innovations resulted in electronic instruments like Electronic Clearing …
Persistent link: https://www.econbiz.de/10013492235
Exchanging collateral has emerged as the market standard for mitigating counterparty credit risk in the interbank derivatives market. Collateral postings do not, however, eliminate that risk completely. Most notably, the so-called gap risk remains, which is the risk that in the event of...
Persistent link: https://www.econbiz.de/10012941878
This paper examines digital finance usage in the UK, US, India and Nigeria. Using data from the global financial … development indicators, the findings reveal that the UK and US have higher digital finance usage than India and Nigeria. The US … has higher debit card usage than India. The findings also show that higher debit card usage is correlated with higher …
Persistent link: https://www.econbiz.de/10012509977
led to greater efficiency and financial stability. The present paper aims to analyze electronic payment & clearing system …
Persistent link: https://www.econbiz.de/10012829736
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The developed world exhibits substantial but poorly understood differences in the efficiency and quality of low-value payment services. This paper compares payments arrangements in the UK, Norway, Sweden, and Finland, and discusses the impact of network effects on incentives to adopt new...
Persistent link: https://www.econbiz.de/10014223771
This paper analyses the issue of the dynamics of the TARGET2 system balances during the sovereign debt crisis, when some countries registered a decisive inflow of the central bank liquidity and others showed an outflow. The dynamics in the TARGET2 are here explained as being due to a fall in the...
Persistent link: https://www.econbiz.de/10011408880