Aframework for Multi-Agent Interbank Payment and Settlement
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Date
2009-11
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Addis Ababa University
Abstract
Interbank payment and settlement systems automate transfer of fund from
one bank to another bank on the order of a customer. The communication
between banks involved in interbank payment and settlement is automated.
Moreover, few agent-based payment systems tried to simulate the trend of
incoming and outgoing payments so as to manage liquidity requirement.
However, interbank payment and settlement systems developed so far are
living with critical problems like gridlock, intraday liquidity management,
and interfacing with autonomous legacy systems.
Hence this thesis proposes a framework for Multi-Agent Interbank Payment
and Settlement (MAIPS) system, which improves interbank payment and
settlement system, and extends its coverage. The proposed framework
interfaces autonomous banking systems with the interbank payment and
settlement system. Besides, MAIPS provides solution for intraday liquidity
management and gridlock problems through automated interbank lending.
Thus the thesis develops a Multi-Attribute Utility Theory (MAUT) based
interbank lending model. In order to secure liquidity through interbank
lending, the system floats bid to borrow liquidity, evaluates bidders’
proposal, selects the best lender and agrees with the winner. This interbank
lending model is simulated through the prototype called Multi-Agent
Interbank Lending System (MAILS), which is developed using Java Agent
DEvelopment (JADE) Framework and uses FIPA English Auction Interaction
Protocol. Finally the prototype is tested using relevant information so as to
clearly visualize interaction of participating banks and check correctness of
the prototype.
The result of this thesis will bring breakthrough in improving interbank
payment and settlement systems. It will also pave the way for multidimensional
complex auctions to use decision aid techniques.
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Keywords: Interbank Payment and Settlement, Cheque Clearance, Multi-
Agent System, Gridlock, Intraday Liquidity Management, Collateralized
Credit, and Interbank Lending.
Description
Keywords
Interbank Payment and Settlement, Cheque Clearance, Multi- Agent System, Gridlock, Intraday Liquidity Management, Collateralized Credit, and Interbank Lending