BOJ-NET Funds Transfers after the Implementation of Phase 1 of the Next-Generation RTGS Project

In October 2008, the Bank of Japan launched Phase 1 of the Next-Generation RTGS (RTGS-XG) project. While the financial conditions in Japan remained tight during the first six months following the implementation, the enhanced BOJ-NET functioned seamlessly, facilitating the smooth flow of payments among financial institutions. Analysis of the BOJ-NET payment pattern after the start of Phase 1 finds that the average settlement time shifted to earlier in the day by one hour, while the aggregate liquidity requirement was reduced by 2 trillion yen. This indicates that the objective of the project, that is, enhancing both the safety and efficiency of large-value payments, has been successfully achieved for Phase 1.