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Funding Levels for the New Accounts in the BOJ-NET

Author

Listed:
  • Kei Imakubo

    (Bank of Japan)

  • James J. McAndrews

    (Federal Reserve Bank of New York)

Abstract

The Bank of Japan decided to implement the next-generation RTGS project of the BOJ-NET Funds Transfer System. Under the project, the new system will have liquidity-saving features and will incorporate large-value payments that are currently handled by two private-sector designated-time net settlement systems, the Foreign Exchange Yen Clearing System and the Zengin System. We analyze characteristics of the optimal funding levels under the new features using simulation analysis. We find that the optimal funding levels can be described with the total balances in the system, the distribution of the total balances across participants, and the timing of funding.

Suggested Citation

  • Kei Imakubo & James J. McAndrews, 2006. "Funding Levels for the New Accounts in the BOJ-NET," Bank of Japan Working Paper Series 06-E-21, Bank of Japan.
    • Handle: RePEc:boj:bojwps:06-e-21
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    File URL: http://www.boj.or.jp/en/research/wps_rev/wps_2006/data/wp06e21.pdf
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Gara Afonso & Hyun Song Shin, 2011. "Precautionary Demand and Liquidity in Payment Systems," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43, pages 589-619, October.
    2. Sam Langfield & Kimmo Soramäki, 2016. "Interbank Exposure Networks," Computational Economics, Springer;Society for Computational Economics, vol. 47(1), pages 3-17, January.

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