Abstract
The aim of this paper is a study of the system for simulating interbank settlements. Interbank payment and settlement systems establish conditions for the circulation of financial funds on the market and guarantee the distribution of assets. Practical experiments in an active system are very risky. They demand to simulate their operation through a system by creating its mathematical model. By perfecting the processing of settlements and/or developing algorithms for solving the gridlocks or by applying the tools of refinancing and using reserves of requirements, one can change the efficiency of settlement systems. The results of the study by Monte‐Carlo simulation are given, based on data of the payment and settlement system of the Bank of Lithuania.
Highlights
When introducing electronic technologies in the area of financial services, it is necessary to solve the tasks of processing and managing settlement flows in order to minimise the costs of settlements and liquidity, credit and systemic risks
Monte-Carlo simulation are based on the data of the payment and settlement system of the Bank of Lithuania
In order to study the policies of credit and liquidity risk control, we consider a probability of exceeding the correspondent account and operational costs of settlements
Summary
When introducing electronic technologies in the area of financial services, it is necessary to solve the tasks of processing and managing settlement flows in order to minimise the costs of settlements and liquidity, credit and systemic risks. The main purpose of such systems is to warrant a fast and rational turnover of settlements, to balance payments, and to reduce the movement of money supply. These systems should provide the principles of stability, efficiency, and security. The owner, operator, and supervisor of such a system by default is the central bank It installs a request for the participants of the system, conducts supervision over their performance and takes measures to guarantee a stable system operation. Monte-Carlo simulation are based on the data of the payment and settlement system of the Bank of Lithuania. The results of study by Monte-Carlo simulation are given, based on the data of the payment and settlement system of the Bank of Lithuania. Sakalauskas / ÛKIO TECHNOLOGINIS IR EKONOMINIS VYSTYMAS 2007, Vol XIII, No 4, 323332
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