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Timing characteristics of overnight unsecured interbank transactions in VIBER

Author

Listed:
  • László Bodnár
  • Miklós Luspay
  • Cecília Pintér

    (Magyar Nemzeti Bank)

Abstract

The article examines the timing, duration and underlying factors affecting the properties of overnight loans settled in the Hungarian large-value payment system (VIBER1) operated by the MNB (Magyar Nemzeti Bank), from a payments perspective. The authors primarily focus on questions such as what sort of patterns or trends exist in regard to the settlement times of unsecured overnight loans completed in VIBER, what factors affect these times and what does the maturity of an O/N transaction depend on, in general. The paper finds that in the case of money market shocks, system participants tend to react similarly in relation to the timing of their O/N transactions. The maturity of overnight transactions is more affected by the timing of O/N loan repayments rather than the borrowing times.

Suggested Citation

  • László Bodnár & Miklós Luspay & Cecília Pintér, 2015. "Timing characteristics of overnight unsecured interbank transactions in VIBER," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 14(4), pages 126-154.
    • Handle: RePEc:mnb:finrev:v:14:y:2015:i:4:p:126-154
    as

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    File URL: http://english.hitelintezetiszemle.hu/letoltes/6-bodnar-luspay-pinter-en.pdf
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    References listed on IDEAS

    as
    1. Scott Hendry & Nadja Kamhi, 2007. "Uncollateralized Overnight Loans Settled in LVTS," Staff Working Papers 07-11, Bank of Canada.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    payment system; VIBER (RTGS); ICS; payments; liquidity; liquidity management; overnight unsecured interbank market; timing of transactions; maturity;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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