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Spontaneous Congestion Process in Inter-bank Payment System

Author

Listed:
  • Chen Ji

    (The people's bank of China, China)

  • Miao Shiguo

    (Financial Research Division The people’s bank of China,, China)

  • Chen Taiyang

    (Accounting and Finance Division The people’s bank of China, China)

  • Wang Daoping

    (Finance Department Nankai University, China)

Abstract

With the highly development of information technology, the more efficient inter-bank payment system is required by modern financial system. This paper analyzes the spontaneous process of congestion in inter-bank payment system through creating multi-agents model between banks and customers. The simulation result indicates that the systemic liquidity congestion of inter-bank payment system is affected seriously by the demand of inter-bank payment. We find that the scale of bank system plays an important role on relieving the systemic payment pressure. On the other hand, the scale of bank system has a positive relationship with the probability of payment crisis occurrence, because the larger scale of the bank, the more pressure it takes in payment system.

Suggested Citation

  • Chen Ji & Miao Shiguo & Chen Taiyang & Wang Daoping, 2013. "Spontaneous Congestion Process in Inter-bank Payment System," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 4(1), pages 32-41, April.
    • Handle: RePEc:aml:intbrm:v:4:y:2013:i:1:p:32-41
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    References listed on IDEAS

    as
    1. repec:zbw:bofism:2005_031 is not listed on IDEAS
    2. Hajime Inaoka & Takuto Ninomiya & Ken Taniguchi & Tokiko Shimizu & Hideki Takayasu, 2004. "Fractal Network derived from banking transaction -- An analysis of network structures formed by financial institutions --," Bank of Japan Working Paper Series 04-E-4, Bank of Japan.
    3. Soramäki, Kimmo & Bech, Morten L. & Arnold, Jeffrey & Glass, Robert J. & Beyeler, Walter E., 2007. "The topology of interbank payment flows," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 379(1), pages 317-333.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Swarm Intelligence; Systemic Congestion; Payment Crisis; Non-homogeneous Poisson Process;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

    Statistics

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