Browsing by Subject "settlement systems"

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  • Iivarinen, Timo; Wirtavuori, Anne (2021)
    Bank of Finland. Bulletin 2/2021
    Payment and settlement systems comprise the financial market infrastructure. A reliable, undisrupted infrastructure makes economic activity a smoother process and promotes the efficient movement of capital. It allows financial institutions to make payments and settle securities transactions. There are also risks involved, however, and if these become widespread, they can affect the stability of the financial markets and society as a whole. Central bank oversight aims to reduce the risks associated with payment and settlement systems.
  • Korpinen, Kasperi (2020)
    Bank of Finland Bulletin. Blog
    I had barely joined the Bank of Finland simulator team and was analyzing the potential changes on liquidity needs of merging the Finnish equity and bond settlement systems, when the 2008 financial crisis hit. As an immediate reaction, we were asked by our management to analyze the liquidity and credit risks associated with possible failures of foreign brokerage firms active in the Finnish market. Using our simulator, we ran stress tests for the Finnish securities settlement system and found out that, luckily, the liquidity needs were relatively low, partly due to the high reciprocity of the trades and associated cash flows. Even though the Bank of Finland simulator was originally created for payment system analysis, this is a good example of versatile use cases of the simulation tool.