Liquidity Levels and Settlement Delays in the Sorbnet System-Simulation-Based Approach With the Application of the BOF-PSS2 Payment System Simulator
Financial Markets and Institutions, pp. 53-66, May 2007
14 Pages Posted: 18 Oct 2007
The article is devoted to the liquidity analysis in the large volume payment system SORBNET run by the NBP. The research was conducted with the use of payment system simulator BOF-PSS2, developed by the Bank of Finland. The goal of the research was to determine the levels of the banks' liquidity necessary to carry out the settlement and the effects of decreasing the liquidity on the settlement delay. The research was based on the data for April 2006. The results of the simulations showed that banks could maintain much lower levels of liquidity for the purpose of settlement in the payment system. Liquidity lower than opening balances on the banks' current account kept at the central bank would be sufficient for settlement in each of the operational days without any disruptions.
Note: Downloadable document is in Polish.
Keywords: payment system, liquidity, settlement delays, payment system simulator
JEL Classification: G21, E47
Suggested Citation: Suggested Citation