Arbeitspapier
Payment systems efficiency, policy approaches, and the role of the central bank
Central bank spending on the operation of inter-bank funds transfer systems may range from below one million to nearly a billion US dollars annually.This paper examines how such costs are incurred and recovered to pursue payment systems efficiency in different countries and under alternative policy approaches.The key findings are as follows.First, strong scale economy effects were found, with unit costs comparatively lower in retail than large-value payment services, while subsidisation was also evident in a survey of thirty-one payment systems.Second, the minimalist approach was more efficiency enhancing than the competitive and public service policy alternatives, due to higher cost-reducing effects, stronger private sector involvement, and the avoidance of the central bank's conflicting role as regulator and service provider in the payments system.And third, regulatory and financial innovations, in addition to technological means, are found to be equally important policy tools that the central bank may adopt to improve the technical and economic efficiency of payment systems.
- ISBN
-
952-462-025-1
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Finland Discussion Papers ; No. 1/2003
- Classification
-
Wirtschaft
- Subject
-
payment systems
efficiency
cost
revenues
innovations
- Event
-
Geistige Schöpfung
- (who)
-
Khiaonarong, Tanai
- Event
-
Veröffentlichung
- (who)
-
Bank of Finland
- (where)
-
Helsinki
- (when)
-
2003
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Khiaonarong, Tanai
- Bank of Finland
Time of origin
- 2003
Other Objects (12)
Developing the interbank payment system: Efficiency of public versus private investments
Simulation studies of liquidity needs, risks and efficiency in payment networks: Proceedings from the Bank of Finland Payment and Settlement System Seminars 2005-2006
Re-engineering payment systems for the E-world
The mixed oligopoly of cross-border payment systems
Less cash on the counter: forecasting Finnish payment preferences
Systemic risk in the Finnish payment system: An empirical investigation
Risk sharing in the pricing of payment services by banks
The efficiency implications of financial conglomeration
An international bibliography of payment instruments and systems literature for the years 1985-1991
Simulation analyses and stress testing of payment networks
Competition and regulation in European retail payment systems
Integrating European retail payment systems: some economics of SEPA
Developing the interbank payment system: Efficiency of public versus private investments
Simulation studies of liquidity needs, risks and efficiency in payment networks: Proceedings from the Bank of Finland Payment and Settlement System Seminars 2005-2006
Re-engineering payment systems for the E-world
The mixed oligopoly of cross-border payment systems
Less cash on the counter: forecasting Finnish payment preferences
Systemic risk in the Finnish payment system: An empirical investigation
Risk sharing in the pricing of payment services by banks
The efficiency implications of financial conglomeration
An international bibliography of payment instruments and systems literature for the years 1985-1991
Simulation analyses and stress testing of payment networks
Competition and regulation in European retail payment systems
Integrating European retail payment systems: some economics of SEPA
Developing the interbank payment system: Efficiency of public versus private investments
Simulation studies of liquidity needs, risks and efficiency in payment networks: Proceedings from the Bank of Finland Payment and Settlement System Seminars 2005-2006
Re-engineering payment systems for the E-world
The mixed oligopoly of cross-border payment systems
Less cash on the counter: forecasting Finnish payment preferences
Systemic risk in the Finnish payment system: An empirical investigation
Risk sharing in the pricing of payment services by banks
The efficiency implications of financial conglomeration
An international bibliography of payment instruments and systems literature for the years 1985-1991
Simulation analyses and stress testing of payment networks
Competition and regulation in European retail payment systems