IDEAS home Printed from https://ideas.repec.org/h/ibg/chaptr/conissue-26.html

Systemic Risks Control Aa a Determinant of Payment Systens Development in WB Countries

In: Contemporary Issues in the Integration Processes of Western Balkan Countries in the European Union

Author

Listed:
  • Aleksandra Bradic Martinovic

    (Institute of Economic Sciences)

Abstract

The payment systems have significant role in each economy. Large-value payment systems (LVPS) are essential part of financial market and represent its infrastructure. In this paper we tried to determine the impact of systemic risk in their functionality using the analysis of indicators for measuring the level of its development. As a basis for analysis we used methodology developed by Cirasino and Garcia (2008), representatives of Payment Systems Development Group (World Bank). In the first part each segment of LVPS indicator is analysed in order to establish connection between systemic risks and the level of LVPS development. The second part of paper contains empirical research for Serbia, Croatia, Bosnia and Herzegovina, Montenegro, Macedonia and Slovenia, because their payment systems share the same heritage. Cirasino and Garcia published their ranks, but we did detailed calculation within all criteria. This calculation provided deeper insight in the risk management of those countries. At the end of the paper the conclusion is given that there is a high dependence between LVPS development and systemic risk management. We also conclude that WB countries and Slovenia has solid systemic risk management in their LVPS.

Suggested Citation

  • Aleksandra Bradic Martinovic, 2011. "Systemic Risks Control Aa a Determinant of Payment Systens Development in WB Countries," Book Chapters, in: Stefan Bogdan Salej & Dejan Eric & Srdjan Redzepagic & Ivan Stosic (ed.), Contemporary Issues in the Integration Processes of Western Balkan Countries in the European Union, chapter 26, pages 424-442, Institute of Economic Sciences.
    • Handle: RePEc:ibg:chaptr:conissue-26
    as

    Download full text from publisher

    File URL: http://www.ien.bg.ac.rs/images/stories/download/contemporaryissues_ch26.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Galos, Peter & Soramäki, Kimmo, 2005. "Systemic risk in alternative payment system designs," Working Paper Series 508, European Central Bank.
    2. De Bandt, Olivier & Hartmann, Philipp, 2000. "Systemic risk: A survey," Working Paper Series 35, European Central Bank.
    3. Ben Norman & Peter Brierley & Peter Gibbard & Andrew Mason & Andrew Meldrum, 2009. "Financial Stability Paper No 6: A Risk-Based Methodology for Payment Systems Oversight," Bank of England Financial Stability Papers 6, Bank of England.
    4. Richard Dale, 1998. "Risk Management and Public Policy in Payment, Clearing and Settlement Systems," International Finance, Wiley Blackwell, vol. 1(2), pages 229-259, December.
    5. repec:bla:intfin:v:1:y:1998:i:2:p:229-59 is not listed on IDEAS
    6. Rahul Dhumale, 1999. "Systemic Risk in International Settlements," Working Papers wp152, Centre for Business Research, University of Cambridge.
    7. Robert A. Eisenbeis, 1997. "International settlements: a new source of systemic risk?," Economic Review, Federal Reserve Bank of Atlanta, vol. 82(Q 2), pages 44-50.
    8. Kim McPhail, 2003. "Managing Operational Risk in Payment, Clearing, and Settlement Systems," Staff Working Papers 03-2, Bank of Canada.
    9. Morten L. Bech & Christine Preisig & Kimmo Soramaki, 2008. "Global trends in large-value payments," Economic Policy Review, Federal Reserve Bank of New York, vol. 14(Sep), pages 59-81.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Augusto Hasman, 2013. "A Critical Review Of Contagion Risk In Banking," Journal of Economic Surveys, Wiley Blackwell, vol. 27(5), pages 978-995, December.
    2. Soramäki, Kimmo & Cook, Samantha, 2013. "SinkRank: An algorithm for identifying systemically important banks in payment systems," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy, vol. 7, pages 1-27.
    3. Soramäki, Kimmo & Cook, Samantha, 2012. "Algorithm for identifying systemically important banks in payment systems," Economics Discussion Papers 2012-43, Kiel Institute for the World Economy.
    4. Ethan B Kapstein, 2006. "Architects of stability? International cooperation among financial supervisors," BIS Working Papers 199, Bank for International Settlements.
    5. Drenkovska, Marija & Lenarčič, Črt, 2025. "Financial markets stress indicator for Slovenia (FIMSIS)," MPRA Paper 125551, University Library of Munich, Germany.
    6. Sander Oosterloo & Jakob de Haan, 2003. "A Survey of Institutional Frameworks for Financial Stability," DNB Occasional Studies 104, Netherlands Central Bank, Research Department.
    7. Alexandra-Maria Chiper, 2023. "Financial Risk Optimisation Methods: A Survey," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 31, pages 155-168, June.
    8. Claeys, Peter & Vašíček, Bořek, 2014. "Measuring bilateral spillover and testing contagion on sovereign bond markets in Europe," Journal of Banking & Finance, Elsevier, vol. 46(C), pages 151-165.
    9. Hyung Sun Choi, 2021. "Payments Systems, Liquidity, Collateral, and Central Banking," Korean Economic Review, Korean Economic Association, vol. 37, pages 65-84.
    10. Mistrulli, Paolo Emilio, 2011. "Assessing financial contagion in the interbank market: Maximum entropy versus observed interbank lending patterns," Journal of Banking & Finance, Elsevier, vol. 35(5), pages 1114-1127, May.
    11. Corina SAMAN, 2016. "The Impact of the US and Euro Area Financial Systemic Stress to the Romanian Economy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 170-183, December.
    12. Dairo Estrada & Daniel Osorio, 2006. "A Market Risk Approach to Liquidity Risk and Financial Contagion," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 24(50), pages 242-271, June.
    13. Armstrong, Christopher & Nicoletti, Allison & Zhou, Frank S., 2022. "Executive stock options and systemic risk," Journal of Financial Economics, Elsevier, vol. 146(1), pages 256-276.
    14. Cetina, Jill & Paddrik, Mark & Rajan, Sriram, 2018. "Stressed to the core: Counterparty concentrations and systemic losses in CDS markets," Journal of Financial Stability, Elsevier, vol. 35(C), pages 38-52.
    15. Kellermann, Kersten, 2010. "Too Big To Fail: Ein gordischer Knoten für die Finanzmarktaufsicht?," KOFL Working Papers 6, Konjunkturforschungsstelle Liechtenstein (KOFL), Vaduz.
    16. Carlos Bautista & Philippe Rous & Amine Tarazi, 2008. "The Determinants of Domestic and Cross Border Bank Contagion Risk in Southeast Asia," Revue économique, Presses de Sciences-Po, vol. 59(6), pages 1215-1242.
    17. Danielsson, Jon & Jorgensen, Bjorn N. & de Vries, Casper G., 2002. "Incentives for effective risk management," Journal of Banking & Finance, Elsevier, vol. 26(7), pages 1407-1425, July.
    18. Michiel Bijlsma & Wim Suyker, 2008. "The credit crisis and the Dutch economy... in eight frequently asked questions," CPB Memorandum 210.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    19. Poledna, Sebastian & Molina-Borboa, José Luis & Martínez-Jaramillo, Serafín & van der Leij, Marco & Thurner, Stefan, 2015. "The multi-layer network nature of systemic risk and its implications for the costs of financial crises," Journal of Financial Stability, Elsevier, vol. 20(C), pages 70-81.
    20. Panagiotis Staikouras & Christos Staikouras & Maria-Eleni Agoraki, 2007. "The effect of board size and composition on European bank performance," European Journal of Law and Economics, Springer, vol. 23(1), pages 1-27, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibg:chaptr:conissue-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zorica Bozic (email available below). General contact details of provider: https://edirc.repec.org/data/ienbgyu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.