to alter payment priorities) to ensure that those time-critical payments are never delayed. When coordination does not …

Deposits finance bank lending and serve as means of payment for bank customers. Under uncertain payment flows, deposits … are debts with random maturities. Payment outflows drain reserves, and the risk is most prominent when funding markets are … under stress and banks are unable to smooth out payment shocks. We provide the first evidence on the negative impact of …

This paper documents a strong connection between payment system and credit supply. The dual role of deposits as … financing instruments for banks and means of payment for bank customers implies spillover effects of bank lending. After a bank … lending through a linear-quadratic game on a random graph of payment flows and structurally estimate the spillover effects …