Template-Type: ReDIF-Article 1.0

Author-Name: Adrian Kollar
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: kollara@mnb.hu
Author-Person:  

Title: Payment Liquidity in the Light of Changes in the Central Bank Toolkit

Abstract: This study examines the impact of the changes implemented by the Magyar Nemzeti
Bank in the central bank toolkit on the liquidity of payment system1 participants
over the period between 2020 and the end of 2023 H2. In response to the economic
challenges of recent years, the central bank toolkit changed significantly during the
period under review. While the economic and financial crisis stemming from the
Covid-19 pandemic required interbank liquidity expansion measures, in 2022 steps
to absorb excess liquidity were necessary to fine-tune monetary transmission and
achieve and maintain price stability. The analysis focuses on the impact of specific
toolkit adjustments on the liquidity of the payment system, while also demonstrating
why interbank liquidity is separated from payment system liquidity, and which toolkit
modifications have typically had a significant impact on the liquidity of the payment
system.

Classification-JEL: E42, E51, E52, G21
Keywords: monetary policy, payment system, VIBER, payment transactions, liquidity
Pages: 76-105
Volume: 23
Issue: 1
Year: 2024
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-23-1-st3-kollar.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:23:y:2024:i:1:p:76-105