This paper describes segregated balance accounts (SBAs), a concept for a new type of account that could provide increased competition for deposits, reduce system-wide balance sheet costs, and improve the transmission of monetary policy by facilitating greater pass-through of interest on excess...

We show how the interbank payment system can become illiquid following wide-scale disruptions. Two forces are at play in such disruptions - operational problems and changes in participants' behavior. We model the interbank payment system as an n-player game and utilize the concept of a potential...