Riesgo sistémico y estabilidad del sistema de pagos de alto valor en Colombia: Análisis bajo topología de redes y simulación de pagos

Translated title of the contribution: Systemic risk and stability of the large value payment system in Colombia: An analysis based on network topology and payments simulation

Clara Machado*, Carlos León, Miguel Sarmiento, Freddy Cepeda, Orlando Chipatecua, Jorge Cely

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)

Abstract

This article studies the stability of the high value payment system (PS) in Colombia (Deposit Account System) when faced with noncompliance on the part of a systemically important entity and evaluates the response capacity of the affected entities on the basis of the utilization of their resources, as well as through the liquidity mechanisms provided by the Banco de la República (the Central Bank of Colombia). According to the recent literature, systemically important entities are grouped under the term too-connected-to-fail (TCTF) in relation to different scenarios involving Colombian Treasury bonds (TES) and PS activities. PS stability is evaluated by means of network topology (NT) and a simulation model of payments (SMP), which incorporate a resolution algorithm recursive queue of the First In First Out (FIFO) kind and a multilateral compensation algorithm.

Translated title of the contributionSystemic risk and stability of the large value payment system in Colombia: An analysis based on network topology and payments simulation
Original languageSpanish
Pages (from-to)106-175
Number of pages70
JournalEnsayos Sobre Politica Economica
Volume29
Issue number65
Publication statusPublished - Jun 2011

Keywords

  • Lender of last resort
  • Monetary policy
  • Network topology
  • Payments model simulation
  • Payments system
  • Systemic risk
  • Too-connected-to-fail

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