Central Banking

Colombian paper analyses intraday liquidity needs

Study analyses Colombian payment system using Bank of Finland simulator

central-bank-of-colombia
Central Bank of Colombia

A singular failure-to-pay between entities could trigger a wider chain of failures-to-pay in the intraday liquidity system, research published last week by the Central Bank of Colombia finds.

In A dynamic approach to intraday liquidity needs, Freddy Cepeda and Fabio Ortega use a simulation developed by the Bank of Finland in conjunction with information on fund transfers that financial institutions make through the Colombian large-value payment system, to analyse the intraday liquidity.

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