Miguel Molico - Latest - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T15:49:42+00:00Conference Summary: New Developments in Payments and Settlement
https://www.bankofcanada.ca/wp-content/uploads/2012/05/boc-review-spring12-fung.pdf
The Bank of Canada’s annual conference, held in November 2011, brought together leading researchers from universities, central banks and other institutions from around the world. Divided into four sessions plus two keynote addresses, the conference covered such topics as the use of cash and other means of payment in retail transactions, large-value payments systems, and […]2012-05-17T10:20:34+00:00enConference Summary: New Developments in Payments and Settlement2012-05-17Liquidity Provision and Collateral Haircuts in Payments Systems
https://www.bankofcanada.ca/wp-content/uploads/2011/11/chapman.pdf
Central banks play a pivotal role in well-functioning payments systems by providing liquidity via collateralized lending. This article discusses the role of collateral and haircut policy in central bank lending, as well as the distinguishing features of the central bank’s policy relative to private sector practices. It presents a model that explicitly incorporates the unique role of central banks in the payments system and argues that central banks must consider how their haircut policies affect the relative price and liquidity of assets, the market’s asset allocation, and the likelihood of participants to default. Furthermore, under extraordinary circumstances, there is a rationale for the central bank to temporarily reduce haircuts or broaden the list of eligible collateral to mitigate the shortage of liquidity in the market.2011-11-17T10:28:10+00:00enLiquidity Provision and Collateral Haircuts in Payments Systems2011-11-17