How to enable future faster payments? An evaluation of a hybrid payments settlement mechanism

• Main Authors: GUO, Zhiling, HUANG, Yuanzhi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: Liquidity; mechanism design; payment system; queue management; simulation; Databases and Information Systems; E-Commerce; Finance and Financial Management; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/sis_research/3910; https://ink.library.smu.edu.sg/context/sis_research/article/4912/viewcontent/how_to_enable.pdf
• Institution: Singapore Management University

In the era of Fintech innovation and e-commerce, faster settlement of massive retail transactions is crucial for business growth and financial system stability. However, speeding up payments settlement can create periodic liquidity shortfalls to banks which would incur high cost of funds in the sett...