Examining full collateral coverage in Canada's large value transfer system / by Lana Embree and Varya Taylor.: FB3-2/115-29E-PDF
In this paper, we use the Bank of Finland Simulator to examine the implications of fully collateralizing Large Value Transfer System (LVTS payments), similar to a real-time gross settlement (RTGS) system. An important caveat to consider, however, is that the simulations do not take into account the anticipated change in payment behaviour in response to a change in collateral requirements. In this regard, we include a queuing mechanism to at least reflect more efficient use of liquidity. The results indicate that collateral requirements vary by participant and some participants actually require less collateral in the simulation than what is required under the current LVTS design.
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| Department/Agency | Bank of Canada. |
|---|---|
| Title | Examining full collateral coverage in Canada's large value transfer system / by Lana Embree and Varya Taylor. |
| Series title | Bank of Canada working paper, 1701-9397 ; 2015-29 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "July 2015." Includes bibliographical references. |
| Publishing information | Ottawa : Bank of Canada, 2015. |
| Author / Contributor | Embree, Lana. Taylor, Varya. |
| Description | v, 14 p. : fig., graphs, tables. |
| Catalogue number |
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| Subject terms | Transfer payments Economic analysis |