Chaps can cope with payments outages
If a financial institution is unable to make - but able to receive - payments, Chaps, the UK's large-value payment system, will ensure that settlement banks stop making payments to the institution, reducing systemic risk, new research from the Bank of England shows.
The analysis finds that settlement banks react to large operational outages that prevent a counterparty from sending payments by ceasing payments to the bank experiencing the outage. The research finds that stopping payments to a bank
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