Another euro-related operational issue has cropped up. Banks have tended not to charge each other for the provision of intra-day liquidity, but the euro payment systems will change all that – at least that’s what bankers are predicting.
But there’s a problem. Hanging onto cash till the last minute before real-time gross settlement systems close for the day may be tempting, but if everyone does it the result will be systems overload and chaos.
The informal Heathrow Group of around 40 major banks, expected to account for around 85% of euro payments, has devised conventions to encourage responsible behaviour and smooth batching of payments, for the common good.
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