An examination of the Federal Reserve's Fedwire Funds Transfer service reveals that the highest concentration of funds-transfer value occurs in the late afternoon. The authors attribute this activity peak to attempts by banks (and their customers) to coordinate payment timing more closely. By...

The swift growth of e-commerce and the Internet has led to the development of a new form of electronic funds transfer - the personal on-line payment - that uses web and e-mail technologies to initiate and confirm payments. This article describes this payment instrument and the trends that have...

Banks rely heavily on incoming payments from other banks to fund their own payments. The terrorist attacks of September 11, 2001, destroyed facilities in Lower Manhattan, leaving some banks unable to send payments through the Federal Reserve's Fedwire payments system. As a result, many banks...

With the growing appeal of cross-border trading in Europe, efforts are under way to establish consolidated exchanges that offer trading in stocks from many European countries. An analysis of these evolving pan-European exchanges suggests that consolidation could reduce the costs and...

Credit extensions to banks using the Fedwire Funds Service - the Federal Reserve's real-time gross settlement (RTGS) payments system - can reach intraday peaks as high as $86 billion. This article evaluates the effectiveness of alternative methods of settling Fedwire payments in reducing...

Households and businesses in the U.S. prefer to use checks over less costly means of payment. Earlier studies have focused on check quot;floatquot; as an explanation for the continued popularity of this seemingly inefficient technology. We construct a general equilibrium model of check payment,...

The Federal Reserve announced in January 2019 that it would maintain an ample supply of reserves amid its balance sheet reduction. We model the impact of reserves on banks' liquidity and balance sheet costs. In competitive general equilibrium, the optimal supply of reserves equates bank deposit...

It takes many years for more efficient electronic payments to be widely used, and the fees thatmerchants (consumers) pay for using those services are increasing (decreasing) over time. Weaddress these puzzles by studying payments system evolution with a dynamic model in a twosidedmarket setting....

The authors review the creation and economic rationale for the Money Market Investors Funding Facility (MMIFF), a Federal Reserve facility designed to provide liquidity to money market mutual funds and securities lenders. Put in place in October 2008 under Section 13(3) of the Federal Reserve...

A unique data set is used to examine the determinants of membership in theYankee 24 shared Automated Teller Machine (ATM) network. Recent work suggeststhat the presence of demand side network externalities influences the decisionto join a network. A model is constructed in which characteristics...