We use a method similar to Google's PageRank procedure to rank banks in the Canadian Large Value Transfer System (LVTS). Along the way we obtain estimates of the payment processing speeds for the individual banks. These differences in processing speeds are essential for explaining why observed daily distributions of liquidity differ from the initial distributions, which are determined by the credit limits selected by banks.

Also published as:

Which Bank is the “Central” Bank?
Journal of Monetary Economics (0304-3932)
April 2010. Vol. 57, Iss. 3, pp. 352-363