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BOJ-NET Funds Transfers after the Implementation of Phase 1 of the Next-Generation RTGS Project

July 2009
Payment and Settlement Systems Department

Click on rev09e04.pdfto download the full text.

In October 2008, the Bank of Japan launched Phase 1 of the Next-Generation RTGS (RTGS-XG) project. While the financial conditions in Japan remained tight during the first six months following the implementation, the enhanced BOJ-NET functioned seamlessly, facilitating the smooth flow of payments among financial institutions. Analysis of the BOJ-NET payment pattern after the start of Phase 1 finds that the average settlement time shifted to earlier in the day by one hour, while the aggregate liquidity requirement was reduced by 2 trillion yen. This indicates that the objective of the project, that is, enhancing both the safety and efficiency of large-value payments, has been successfully achieved for Phase 1.

Notice

Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2009-E-4, is a translation of the original Japanese issue, 2009-J-4, published in May 2009.

If you have comments or questions, please contact Yutaka Soejima, Director, Head of Payments Policy Section, Payment and Settlement Systems Department (E-mail: yutaka.soejima@boj.or.jp).