payment systems

The Eurosystem: Part 2

19 November 2011

In a post last week – The Eurosystem: Part 1, I went into the Euro Area payment system TARGET2 and touched upon domestic payments and implementation of monetary policy in the Euro Area. This post takes off from their to discuss cross-border flows. There are two reasons for looking into this is: to understand the flow-of-funds […]


The Eurosystem: Part 1

12 November 2011

The Eurosystem consists of the European Central Bank (ECB) and 17 National Central Banks (NCBs) of the member nations. The purpose of this post (and some that will follow) is to explain how the RTGS payment and settlement system called TARGET2 works in order to understand the flow of funds within the Euro Area. The […]


Payment Systems And Settlement

31 August 2011

Few posts back, in More On Horizontalism, it was mentioned how loans make deposits. The unanswered question in the post was If loans make deposits, why do banks require funding? That will still be left unanswered for the time being, but in this post we will discuss simple payment systems and settlement. Hopefully it was clear […]