01974cas a2200253 a 4500 AALejournalIMF020987 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513545080 1018-5941 BD-DhAAL BD-DhAAL Heijmans, Ronald. Measuring the Impact of a Failing Participant in Payment Systems / Ronald Heijmans, Froukelien Wendt. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Banks and financial market infrastructures (FMIs) that are not able to fulfill their payment obligations can be a source of financial instability. This paper develops a composite risk indicator to evaluate the criticality of participants in a large value payment system network, combining liquidity risk and interconnections in one approach, and applying this to the TARGET2 payment system. Findings suggest that the most critical participants in TARGET2 are other payment systems, because of the size of underlying payment flows. Some banks may be critical, but this is mainly due to their interconnectedness with other TARGET2 participants. Central counterparties and central securities depositories are less critical. These findings can be used in financial stability analysis, and feed into central bank policies on payment system access, oversight, and crisis management. Mode of access: Internet Wendt, Froukelien. IMF Working Papers; Working Paper ; No. 2020/081 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/081/001.2020.issue-081-en.xml IMF e-Library