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Bank of Canada RSS Feedsen2024-03-29T01:03:49+00:00Excess Collateral in the LVTS: How Much is Too Much?
https://www.bankofcanada.ca/2003/11/working-paper-2003-36/
The authors build a theoretical model that generates demand for collateral by Large Value Transfer System (LVTS) participants under the assumption that they minimize the cost of holding and managing collateral for LVTS purposes. The model predicts that the optimal amount of collateral held by each LVTS participant depends on the opportunity cost of collateral, the transactions costs of acquiring assets used as collateral and transferring them in and out of the LVTS, and the distribution of an LVTS participant's payment flows in the LVTS.2003-11-02T15:45:22+00:00enExcess Collateral in the LVTS: How Much is Too Much?2003-11-02Financial institutionsPayment clearing and settlement systemsWorking Paper 2003-36 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp03-36.pdfExcess Collateral in the LVTS: How Much is Too Much?Kim McPhailAnastasia VakosNovember 2003EE4E44GG2G21