{"id":6995,"date":"2018-05-23T14:52:38","date_gmt":"2018-05-23T12:52:38","guid":{"rendered":"https:\/\/www.uni.lu\/fr\/events\/lsf-lunch-seminar-making-money-commercial-banks-liquidity-transformation-and-the-payment-system\/"},"modified":"2018-05-23T14:52:38","modified_gmt":"2018-05-23T12:52:38","slug":"lsf-lunch-seminar-making-money-commercial-banks-liquidity-transformation-and-the-payment-system","status":"publish","type":"events","link":"https:\/\/www.uni.lu\/fr\/events\/lsf-lunch-seminar-making-money-commercial-banks-liquidity-transformation-and-the-payment-system\/","title":{"rendered":"LSF Lunch Seminar : Making Money:   Commercial Banks, Liquidity Transformation and the Payment System"},"content":{"rendered":"<section class=\"wp-block-unilux-blocks-free-section section\"><div class=\"container xl:max-w-screen-xl\"><p><strong>Abstract<\/strong><\/p><p>\u00a0<\/p><p>We consider banks as both payment processors and as lenders.<\/p><p>In our model, banks make loans by issuing digital claims to entrepreneurs, who use these claims to pay merchants for inputs in a long-term project. Payment flows lead to two types of liquidity<\/p><p>demand. In the interim, merchants cash in some digital claims before the project is over, necessitating intermediate transfers in the interbank market. Ex post, final settlement requires the lending bank to transfer reserves other banks. Each of these transfers has a cost; the endogenous interest rate in the interbank market and a settlement cost for final transfers. We characterize equilibrium in the model and consider the effects of financial innovation<\/p><p>(i.e., FinTech) in the payment system.<\/p><p>We show that a reduction in the need for intermediate liquidity induces each bank to increase its lending, improving productive<\/p><p>efficiency, but can also lead to an increase in the interbank interest rate. Innovations that increase inter-zonal commerce shift investment from more productive to less productive<\/p><p>regions, decreasing productive efficiency.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p><\/div><\/section>","protected":false},"excerpt":{"rendered":"","protected":false},"author":0,"featured_media":6996,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"featured_image_focal_point":[],"show_featured_caption":false,"ulux_newsletter_groups":"","uluxPostTitle":"","uluxPrePostTitle":"","_trash_the_other_posts":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"event_start_date":"2018-05-31 12:30:00","event_end_date":"2018-05-31 13:45:00","event_speaker_name":"Christine Parlour - U.C. Berkeley ","event_speaker_link":"","event_is_online":false,"event_location":"Luxembourg School of Finance\r\nJFK Building \r\n29,Avenue J.F Kennedy\r\nL-1855 Luxembourg\r\nGround Floor, Nancy Room","event_street":"","event_location_link":"","event_zip_code":"","event_city":"","event_country":"LU"},"events-topic":[309],"events-type":[],"organisation":[116,101,226],"authorship":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>LSF Lunch Seminar : Making Money:  Commercial Banks, Liquidity Transformation and the Payment System - Universit\u00e9 du Luxembourg<\/title>\n<meta name=\"description\" content=\"Abstract\u00a0We consider banks as both payment processors and as lenders.In our model, banks make loans by issuing digital claims to entrepreneurs, who use\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.uni.lu\/fr\/events\/lsf-lunch-seminar-making-money-commercial-banks-liquidity-transformation-and-the-payment-system\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LSF Lunch Seminar : Making Money:  Commercial Banks, Liquidity Transformation and the Payment System\" \/>\n<meta property=\"og:description\" content=\"Abstract\u00a0We consider banks as both payment processors and as lenders.In our model, banks make loans by issuing digital claims to entrepreneurs, who use\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.uni.lu\/fr\/events\/lsf-lunch-seminar-making-money-commercial-banks-liquidity-transformation-and-the-payment-system\/\" \/>\n<meta property=\"og:site_name\" content=\"UNI FR\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/uni.lu\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/11\/2026\/03\/03120045\/UNIV_SM-Profile_1600x1600px-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"2560\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Dur\u00e9e de lecture estim\u00e9e\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.uni.lu\/fr\/events\/lsf-lunch-seminar-making-money-commercial-banks-liquidity-transformation-and-the-payment-system\/\",\"url\":\"https:\/\/www.uni.lu\/fr\/events\/lsf-lunch-seminar-making-money-commercial-banks-liquidity-transformation-and-the-payment-system\/\",\"name\":\"LSF Lunch Seminar : Making Money: Commercial Banks, Liquidity Transformation and the Payment System - 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