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 Impact of Tiering on Liquidity Usage
31 Dec 2012
RDP
2012-06
The Impact of Tiering on Liquidity Usage. Robert Arculus, Jennifer Hancock and Greg Moran. ... That is, the network effect leads to an additional $236 million in total liquidity savings.
https://www.rba.gov.au/publications/rdp/2012/2012-06/impact-tier-liquidity-usage.html
Appendix B: Decomposing Liquidity Savings
31 Dec 2012
RDP
2012-06
Second, our additional simulations do not perfectly separate out the liquidity-saving effects of tiering. ... Footnote. Liquidity savings in the other three system designs exhibit a similar pattern.
https://www.rba.gov.au/publications/rdp/2012/2012-06/appendix-b.html
Methodology
31 Dec 2012
RDP
2012-06
by the value of the liquidity accessed by its clients when they were direct participants). ... tiering. Therefore, our preference has been to remain with fixed, non-additive access to liquidity.
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
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/
Conclusions
31 Dec 2012
RDP
2012-06
bilateral-offset algorithm and a liquidity-reservation feature) reduces the incentive to save liquidity by tiering. ... While tiering can reduce liquidity needs, it can also increase risk in the system.
https://www.rba.gov.au/publications/rdp/2012/2012-06/conclusions.html
The Impact of Tiering on Risk
31 Dec 2012
RDP
2012-06
in the RTGS system we expect higher settlement bank exposures in the more liquidity-intensive pure RTGS system. ... However, by concentrating payment flows, tiering amplifies the consequences of an operational incident at the settlement bank – in
https://www.rba.gov.au/publications/rdp/2012/2012-06/impact-tier-risk.html
Introduction
31 Dec 2012
RDP
2012-06
However, RTGS systems require participants to hold substantial liquidity in order to make payments. ... Based on these simulations, Section 5 presents estimates of liquidity savings from tiering under different system designs.
https://www.rba.gov.au/publications/rdp/2012/2012-06/introduction.html
Australia's RTGS System
31 Dec 2012
RDP
2012-06
RITS incorporates other queue management features, which allow participants to manage their payments and reserve liquidity for ‘priority’ payments. ... The liquidity-reservation feature in RITS allows participants to set a ‘sub-limit’, where
https://www.rba.gov.au/publications/rdp/2012/2012-06/aus-system.html
Appendix A: Sub-limits and Bilateral Offsetting
31 Dec 2012
RDP
2012-06
Priority. Priority. Submission time to RITS. Note: In the pure RTGS system design with unlimited liquidity all payments are submitted to the simulator at the time they were settled in RITS ... A number of participants in RITS have been observed to manage
https://www.rba.gov.au/publications/rdp/2012/2012-06/appendix-a.html