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A liquidity black hole: what is the impact of a failing participant in a large-value payment system, and does time matter?

Ronald Heijmans & Ellen van der Woerd

Journal of Financial Market Infrastructures2025https://doi.org/10.21314/jfmi.2025.007article
AJG 1
Weight
0.50

What the paper says

This paper presents a methodology to detect potential failing participants in large value payment systems and measure the intraday impact of outages, considering Liquidity, Systemic, and Receiver Impacts. Medium and high risk thresholds are es- tablished to create a combined risk indicator. Outages of large banks can be detected within 10 minutes, while smaller banks may take over 30 minutes. Impact and risk levels vary by the size of the bank and the start time of the outage. Large banks can reach high-risk levels in 30 minutes, highlighting the need for timely detection, whereas smaller banks rarely reach high-risk levels.

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https://doi.org/https://doi.org/10.21314/jfmi.2025.007

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@article{ronald2025,
  title        = {{A liquidity black hole: what is the impact of a failing participant in a large-value payment system, and does time matter?}},
  author       = {Ronald Heijmans & Ellen van der Woerd},
  journal      = {Journal of Financial Market Infrastructures},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.21314/jfmi.2025.007},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.