-time gross settlement payment system and the way in which these incentives change with the introduction of a liquidity …, in our model welfare is always higher with an LSM in a collateral-based system. -- Liquidity-saving mechanism ; intraday … liquidity ; payments …

This paper considers the welfare effects of introducing a liquidity-saving mechanism (LSM) in a real-time gross … parameter values. -- Liquidity-saving mechanisms ; real-time gross settlement ; large-value payment systems …

We study two designs for a liquidity-saving mechanism (LSM), a queuing arrangement used with an interbank settlement … system. We consider an environment where banks are subjected to liquidity shocks. Banks must make the decision to send, queue … payment from the queue is conditional on the liquidity shock. With a receipt-reactive LSM, a payment is released from the …

banks to have private information about the risk of their assets. We show how banks’ asset risk affects funding liquidity in … state with adverse selection and elevated rates; and iii) market breakdown with liquidity hoarding. We provide an … of unsecured rates and excess reserves banks hold, as well as the inability of massive liquidity injections by central …

system and how these incentives change with the introduction of a liquidity-saving mechanism (LSM). We show that an LSM … that under a fee-based RTGS system, the introduction of an LSM in some circumstances may reduce welfare. -- Liquidity …-saving mechanism ; intraday liquidity ; payments …

Bilateral payment flows between banks may provide private information about a borrowing bank's liquidity position. This … of liquidity are penalized by their counterparties, while in the latter, these banks benefit through reduced search costs … to find a liquidity provider. I use data from Norges Bank's real time gross settlement system over the period 2012 to …

and the central bank's liquidity support measures following the Covid-19 pandemic. The liquidity measures enabled banks to … fulfil their liquidity needs primarily through participation in extraordinary liquidity auctions. The distribution of central … bank reserves across banks did not change due to these measures, but interbank trading fell sharply. Ample liquidity …