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Economizing on liquidity with deferred settlement mechanisms.

* Real-time gros arrangement (RTGS) systems such as the Federal Reserve's Fedwire capitals Service enable participating banks to bench payments immediately and in the replete amount; however, the high horizontal of liquidity inherent in the combination of parts to form a wholes requires large intraday credit extensions.

* An examination of several deferr arrangement mechanisms that could potentially full tale RTGS systems considers a novel mechanism--a receipt-reactive gros arrangement system--that bases the settlement of a bank's payments upon the value of its receipts above a given time, rather than upon the bank's ...





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