Open AccessTHE SYSTEM FOR SIMULATING INTERBANK SETTLEMENTS
Author(s) -
Donatas Bakšys,
Leonidas Sakalauskas
Publication year - 2007
Publication title -
technological and economic development of economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.634
H-Index - 47
eISSN - 2029-4921
pISSN - 2029-4913
DOI - 10.3846/13928619.2007.9637818
Subject(s) - settlement (finance) , human settlement , payment , payment system , circulation (fluid dynamics) , business , finance , actuarial science , computer science , engineering , aerospace engineering , waste management
The aim of this paper is a study of the system for simulating interbank settlements. Interbank payment and settlement systems establish conditions for the circulation of financial funds on the market and guarantee the distribution of assets. Practical experiments in an active system are very risky. They demand to simulate their operation through a system by creating its mathematical model. By perfecting the processing of settlements and/or developing algorithms for solving the gridlocks or by applying the tools of refinancing and using reserves of requirements, one can change the efficiency of settlement systems. The results of the study by Monte‐Carlo simulation are given, based on data of the payment and settlement system of the Bank of Lithuania.