Economizing on Liquidity with Deferred Settlement Mechanisms

[...]This article is organized as follows. In the next section, wediscuss the basics of deferred settlement systems, and in Section 3we describe the systems used in our simulations. In Section 4,we describe the performance metrics and results of the basicsimulations, and in Section 5 we conduct a sensitivity analysisof the results obtained from alternative levels of queuedpayments. Sections 6 and 7 present more detailed analyses ofliquidity use and the level of end-of-day queues. In Section 8,we discuss our results and the likely behavioral responses by a bank participant to the availability of the simulated systems.We conclude with a discussion of our results in light of theprevious literature...