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How banks create gridlock to save liquidity in Canada's large value payment system / by Rodney Garratt, Zhentong Lu and Phoebe Tian.FB3-5/2023-26E-PDF

"Using detailed data from Canada’s new high-value payment system (HVPS), we show how participants of the system save liquidity by exploiting the new gridlock resolution arrangement. These observed behaviors are consistent with the equilibrium of a “gridlock game” that captures the key incentives that participants face in the system. The findings have important implications for the design of HVPSs and shed light on financial institutions’ liquidity preference"--Abstract.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.922341&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleHow banks create gridlock to save liquidity in Canada's large value payment system / by Rodney Garratt, Zhentong Lu and Phoebe Tian.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-26
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: May 4, 2023."
  • Includes bibliographical references (pages 31-32).
  • Includes abstract in French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2023.
  • ©2023
Description1 online resource (2, 42 pages) : charts
Catalogue number
  • FB3-5/2023-26E-PDF
Subject terms
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