Comment on controlling risk in payment systems

Journal of Money, Credit and Banking

Volumn 28, Issue 4, 1996, Pages 863-868

  Summers, Bruce J ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0040898885     PISSN: 00222879     EISSN: None     Source Type: Journal    
DOI: 10.2307/2077925     Document Type: Article

References (8)

1. Although the organization of RTGS and DNS is quite different between Japan and the United States. See Horii, Akinari, and Bruce J. Summers, "Large-Value Transfer Systems," in The Payment System: Design, Management, and Supervision, edited by Bruce J. Summers. International Monetary Fund, 1994.
2. Like Rochet and Tirole, my remarks apply only to the Fedwire funds transfer service, ignoring the Fedwire securities transfer service.
3. Volume and value trends in alternative payment and securities clearing arrangements in the United States are discussed in Summers, Bruce J., and R. Alton Gilbert, "Clearing and Settlement of U.S. Dollar Payments: Back to the Future?" Unpublished manuscript, August 1996.
4. See Blommestein, Hans J., and Bruce J. Summers, "Banking and the Payment System," in The Payment System: Design, Management, and Supervision, edited by Bruce J. Summers. International Monetary Fund, 1994.
5. As a practical matter, the duties of Federal Reserve Bank credit officers will extend over an eighteen-hour day beginning in late 1997, when the Fedwire funds transfer system opens at 12:30 A.M. Eastern time.
6. The CHIPS system net debit cap has recently been lowered from 5.00 percent to 4.50 percent. The system net debit cap is scheduled to be reduced to 4.25 percent on July 1, 1996, and a further reduction to 4.00 percent is scheduled tor July 6, 1997. A reduction to 3.0 percent is being discussed as a means of expanding the CHIPS settlement guarantee to cover the two largest net debtors in the netting arrangement.
7. See Marquardt, Jeffrey C., "Payment System Policy Issues and Analysis," in The Payment System: Design, Management, and Supervision, edited by Bruce J. Summers. International Monetary Fund, 1994.
8. To complete this story, public opinion has now shifted to support the Fed's action, even among CHIPS participants. See, for example: The New York Clearing House Association, Risk Reduction and Enhanced Efficiency in Large-Value Payment Systems: A Private-Sector Response, New York, January 1995.