The Bank for International Settlements published a working paper examining transaction timing in Colombia’s large-value payment system from 2018 to 2025. It finds that reserve requirement reductions in April 2020 and September 2024 were associated with settlement activity shifting later in the day, particularly for higher-value payments, increasing the concentration of large-value flows near the end of the operating day. The effects varied by institution size. Small institutions benefited more from marginal liquidity and earlier settlement at lower value percentiles, while medium-sized and large institutions delayed higher-value payments. The April 2024 introduction of the new Central Securities Depository system was also associated with earlier settlement of lower-value payments and later settlement of higher-value transactions, while greater reliance on intraday repos delayed early activity but improved liquidity management later in the day. The paper calls for close monitoring of intraday timing because late concentrations of large-value payments can increase exposure to disruptions near system closure and amplify liquidity coordination frictions.
2026-08-25Bank for International Settlements
Bank for International Settlements study links lower reserve requirements to later large-value payment settlement in Colombia
A Bank for International Settlements study finds that Colombia’s 2020 and 2024 reserve requirement reductions shifted large-value payment settlement later in the day. Delays were concentrated among higher-value payments and medium-sized and large institutions, while the new securities depository and greater use of intraday repos also reshaped settlement timing.