Gridlock resolution in interbank payment systems
Bech, Morten L.; Soramäki, Kimmo (13.06.2001)
Numero
9/2001Julkaisija
Suomen Pankki
2001
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-20140807337Tiivistelmä
The paper analyses the severity of gridlocks in interbank payment systems operating on a real time basis and evaluates by means of simulations the merits of a gridlock resolution algorithm.Data used in the simulations consist of actual payments settled in the Danish and Finnish RTGS systems.The algorithm is found to be applicable to a real time environment and effective in reducing queuing in the systems at all levels of liquidity, but in particular when intra-day liquidity is scarce