Starting from the intraday liquidity gaps commercial banks face in RTGS, this article explains the three sources banks use to fill them: their own reserves, the interbank market and central bank intraday credit. It compares how major RTGS systems in the US, the euro area, the UK, mainland China and Hong Kong handle this, and draws on PFMI Principle 7 and the Basel Committee's intraday liquidity monitoring tools to show how the risks are shared.
Not every RTGS payment settles instantly. Using bilateral and multilateral examples, this article explains how payments are queued, scheduled and offset when funds run short, and draws on CHAPS, T2 and Hong Kong's CHATS to show what liquidity-saving mechanisms can and cannot do.
An in-depth analysis of payment systems based on BIS and CPMI definitions, dissecting clearing versus settlement, comparing RTGS, DNS, and hybrid systems, and mapping the global FMI landscape toward tokenised settlement.
Starting with two-way payments between Bank A and Bank B, this article explains how RTGS and DNS balance settlement finality, intraday liquidity, and risk control, and compares hybrid designs across major payment systems.