Search: liquidity
RBA Glossary definition for liquidity
liquidity – The capacity to sell an asset quickly without significantly affecting the price of that asset. Liquidity is also sometimes used to refer to assets that are highly liquid.
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The Benefits and Costs of Tiering
31 Dec 2012
RDP
2012-06
Combining payment flows allows more payments to be funded from receipts (liquidity pooling). ... This ‘liquidity dependence’ may have a significant effect on the indirect participant as it no longer has direct access to central bank liquidity.
https://www.rba.gov.au/publications/rdp/2012/2012-06/benefits-costs-tiering.html
References
31 Dec 2012
RDP
2012-06
Download the Paper 862. KB. Adams M, M Galbiati and S Giansante (2010), ‘Liquidity Costs and Tiering in Large-Value Payment Systems’, Bank of England Working Paper No 399.
https://www.rba.gov.au/publications/rdp/2012/2012-06/references.html
Weighing the Benefits and Costs of Tiering
31 Dec 2012
RDP
2012-06
Download the Paper 862. KB. The liquidity savings from tiering come at the cost of increased credit and concentration risk. ... One measure of the benefit of liquidity savings is the opportunity cost of the collateral used to obtain liquidity.
https://www.rba.gov.au/publications/rdp/2012/2012-06/weighing-benefits-cost-tiering.html