Payments settlement: Tiering in private and public systems

Charles M. Kahn, William Roberds

Research output: Contribution to journalArticlepeer-review


What are the benefits provided by a payment system" What are the trade-offs in public versus private payment systems and in restricted versus open payments arrangements" Modern payment systems encompass a variety of institutional designs with varying degrees of counterparty protection. We develop a framework that allows for an examination and comparison of payment systems, and specification of conditions leading to their adoption. We relate these conditions to the design of present large-value payment systems (Fedwire, CHIPS, TARGET, etc.).

Original languageEnglish (US)
Pages (from-to)855-884
Number of pages30
JournalJournal of Money, Credit and Banking
Issue number5
StatePublished - Aug 2009


  • Limited enforcement
  • Payment systems
  • Settlement risk
  • Tiering

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


Dive into the research topics of 'Payments settlement: Tiering in private and public systems'. Together they form a unique fingerprint.

Cite this