Simulation of automated real‐time gross interbank settlement Cover Image

Simulation of automated real‐time gross interbank settlement
Simulation of automated real‐time gross interbank settlement

Author(s): Donatas Bakšys, Leonidas Sakalauskas
Subject(s): Methodology and research technology, Evaluation research, Financial Markets
Published by: Vilnius Gediminas Technical University
Keywords: interbank payments; settlements; simulation of settlements; payments flow; algorithms of interbank settlements;

Summary/Abstract: The aim of this paper is to analyze algorithms for the automated real-time gross interbank settlement (RTGS). One can change the efficiency of settlement systems by perfecting the processing of settlements and/or implementing rules for solving the gridlocks, or by applying the tools of refinancing and reservation. We focus on the settlement simulation of the Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET2). The system of modelling, simulation, and optimization of settlements (Bakšys and Sakalauskas 2007b) is applied in the simulation of TARGET2, estimating the parameters of simulation according to the real data.

  • Issue Year: 15/2009
  • Issue No: 1
  • Page Range: 123-135
  • Page Count: 13
  • Language: English