Home Markets Paper calls for action on payment ‘free-riding’ in Colombia

Paper calls for action on payment ‘free-riding’ in Colombia


Colombian financial corporations hoard liquidity in the country’s large-value payment system (LVPS), intentionally delaying payments until they can fund them with payments received from other participants, according to a new paper published in the Journal of Financial Market Infrastructure.

There is also evidence of this payment strategy being used by banks, brokers and trust companies, but the biggest culprits are the two largest financial corporations, under measures of free-riding based on

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