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Intra-day liquidity and real-time gross settlement - 18 months on

Author

Listed:
  • Tim Hampton

    (Reserve Bank of New Zealand)

Abstract

Last year the Reserve Bank and the New Zealand banking system shifted to a system of real-time gross settlement (RTGS) for large wholesale payments, as a way of substantially reducing the level of risk associated with the inter- bank settlement process. This article explains the choices made as to how to provide the additional liquidity, reviews the successful first 18 months of the new system, and outlines some refinements that have recently been announced.

Suggested Citation

  • Tim Hampton, 1999. "Intra-day liquidity and real-time gross settlement - 18 months on," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 62, December.
  • Handle: RePEc:nzb:nzbbul:december1999:3
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    File URL: http://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Bulletins/1999/1999dec62-4Hampton.pdf
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    References listed on IDEAS

    as
    1. Bruce White, 1998. "Payment system reform in New Zealand: the start of real-time gross settlement," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 61, March.
    2. Carrick Lucas & Lauren Rosborough, 1999. "The foreign exchange market and derivatives activity," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 62, March.
    3. David Archer & Andy Brookes & Michael Reddell, 1999. "A cash rate system for implementing monetary policy," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 62, March.
    4. Loretta DeSourdy, 1999. "New legislation on netting and payments finality," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 62, June.
    5. Christian Hawkesby, 1999. "A primer on derivatives markets," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 62, June.
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    Cited by:

    1. Andy Brookes & Tim Hampton, 2000. "The Official Cash Rate one year on," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 63, June.
    2. Quigley, Neil & Evans, Lewis, 2002. "An Analysis of the Reserve Bank of New Zealand's Policy on the Incorporation of Foreign Banks," Working Paper Series 3897, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    3. Tim Hampton, 2000. "Y2K and banking system liquidity," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 63, March.
    4. Andy Brookes, 1999. "Monetary policy and the Reserve Bank balance sheet," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 62, December.

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