A Liquidity Saving Mechanism (LSM) was introduced into the Bank of England’s RTGS infrastructure in April 2013. To evaluate alternative methods of LSM, the Bank run a series of simulations using the FNA Platform. The paper ‘Liquidity Savings in CHAPS - a simulation study’ summarizes the results and finds that aggregate liquidity savings of up to 30% were to be expected. In an ex-post analysis "How has the Liquidity Saving Mechanism reduced banks’ intraday liquidity costs in CHAPS" the collateral savings were quantified as £5B.
The project described the network properties of the Korean Interbank payment system (BOK-Wire+), identified systemically important banks, and developed a new intraday liquidity indicator. The project helped Bank of Korea develop monitoring indicators what are especially suited for continuous oversight of intraday liquidity and systemic risks in payment systems. The full results are published in Network Indicators for Monitoring Intraday Liquidity in BOK-Wire+
Payments Canada is leading a multi-year program to modernize the Canadian Payment system. Initial simulations with FNA revealed that moving to a RTGS arrangement could increase participants’ liquidity needs by more than 40 per cent. But also that advanced Liquidity Saving Mechanisms could bring this substantially down.