Search: settlement
RBA Glossary definition for settlement
settlement – The discharge of obligations arising from fund transfers between two or more parties.
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The Impact of Tiering on Risk
31 Dec 2012
RDP
2012-06
Each colour in the figure represents one of the 4 largest settlement banks. ... Consequently, in choosing to tier the client becomes operationally dependent on its settlement bank.
https://www.rba.gov.au/publications/rdp/2012/2012-06/impact-tier-risk.html
Introduction
31 Dec 2012
RDP
2012-06
Download the Paper 862. KB. Most high-value payment systems settle payments on a real-time gross settlement (RTGS) basis. ... Credit risk arises because the settlement bank and its client(s) are exposed to the failure of each other.
https://www.rba.gov.au/publications/rdp/2012/2012-06/introduction.html
Australia's RTGS System
31 Dec 2012
RDP
2012-06
Participants can amend the status of payments at any time prior to settlement. ... to hold a settlement account with the RBA to allow them to participate directly in RITS.
https://www.rba.gov.au/publications/rdp/2012/2012-06/aus-system.html
Methodology
31 Dec 2012
RDP
2012-06
all smaller institutions were taken as given, the choice of settlement bank differed only in four cases. ... Alternatively, we could have assumed that the settlement bank increases the liquidity it accesses (e.g.
https://www.rba.gov.au/publications/rdp/2012/2012-06/methodology.html
The Impact of Payment System Design on Tiering Incentives
30 Oct 2012
RDP
2012-06
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2012/2012-06.html
Appendix B: Decomposing Liquidity Savings
31 Dec 2012
RDP
2012-06
Any reduction in liquidity usage in this case will be due to transactions between the client and the settlement bank being settled outside the RTGS system. ... For example, consider initially that participant B acts as settlement bank for participant A.
https://www.rba.gov.au/publications/rdp/2012/2012-06/appendix-b.html
Appendix A: Sub-limits and Bilateral Offsetting
31 Dec 2012
RDP
2012-06
Time when submitted to the simulator. Deferred. Active. Active. Settlement time in RITS. ... Priority. Priority. Settlement time in RITS. Active. Active. Active. Submission time to RITS.
https://www.rba.gov.au/publications/rdp/2012/2012-06/appendix-a.html
References
31 Dec 2012
RDP
2012-06
Australian Prudential Regulation Authority and Reserve Bank of Australia (2003), ‘Management of Exchange Settlement Accounts’, Joint Media Release, 26 March. ... 228. Gallagher P, J Gauntlett and D Sunner (2010), ‘Real-Time Gross Settlement in
https://www.rba.gov.au/publications/rdp/2012/2012-06/references.html
The Impact of Payment System Design on Tiering Incentives
1 Oct 2012
RDP
2012-06
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2012/2012-06/
The Benefits and Costs of Tiering
31 Dec 2012
RDP
2012-06
intraday credit and the latter due to the settlement bank's role as holder of the relevant accounts. ... To manage this change in credit risk, settlement banks may well react by reducing the credit they extend to their clients in times of stress.
https://www.rba.gov.au/publications/rdp/2012/2012-06/benefits-costs-tiering.html