Aframework For Multi-agent Interbank Payment And Settlement

Interbank payment and settlement systems automate transfer of fund fromrnone bank to another bank on the order of a customer. The communicationrnbetween banks involved in interbank payment and settlement is automated.rnMoreover, few agent-based payment systems tried to simulate the trend ofrnincoming and outgoing payments so as to manage liquidity requirement.rnHowever, interbank payment and settlement systems developed so far arernliving with critical problems like gridlock, intraday liquidity management,rnand interfacing with autonomous legacy systems.rnHence this thesis proposes a framework for Multi-Agent Interbank Paymentrnand Settlement (MAIPS) system, which improves interbank payment andrnsettlement system, and extends its coverage. The proposed frameworkrninterfaces autonomous banking systems with the interbank payment andrnsettlement system. Besides, MAIPS provides solution for intraday liquidityrnmanagement and gridlock problems through automated interbank lending.rnThus the thesis develops a Multi-Attribute Utility Theory (MAUT) basedrninterbank lending model. In order to secure liquidity through interbankrnlending, the system floats bid to borrow liquidity, evaluates bidders’rnproposal, selects the best lender and agrees with the winner. This interbankrnlending model is simulated through the prototype called Multi-AgentrnInterbank Lending System (MAILS), which is developed using Java AgentrnDEvelopment (JADE) Framework and uses FIPA English Auction InteractionrnProtocol. Finally the prototype is tested using relevant information so as tornclearly visualize interaction of participating banks and check correctness ofrnthe prototype.rnThe result of this thesis will bring breakthrough in improving interbankrnpayment and settlement systems. It will also pave the way for multidimensionalrncomplex auctions to use decision aid techniques.rnviiirnKeywords: Interbank Payment and Settlement, Cheque Clearance, Multi-rnAgent System, Gridlock, Intraday Liquidity Management, CollateralizedrnCredit, and Interbank Lending.

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