Central Banking

RTGS & hybrid payment systems: a comparison

This Bank of England Working Paper published on Tuesday 1 March contrasts Real-Time Gross Settlement and hybrid payment systems that are based on payment offset, using a two-period, multi-bank model. It finds that hybrid payment systems outperform RTGS systems under some circumstances.

The comparison is performed according to two criteria: liquidity needs and speed of settlement. The author assumes that the existence of a payment is common knowledge but that the specific degree of time

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