Herstatt risk: Difference between revisions
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imported>Doug Williamson (Linked to The Treasurers Handbook - Payments and payment systems) |
imported>John Grout (To add a reference to the first so complete history of the Herstatt crisis.) |
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* [[Foreign exchange settlement risk]] | * [[Foreign exchange settlement risk]] | ||
* [[Payments and payment systems]] | * [[Payments and payment systems]] | ||
== External Link == | |||
* A comprehensive historical account of the Herstatt crisis by Emmanuel Mourlon-Druol is available here[http://tiny.cc/8ct73x]. ‘Trust is good, control is better’: The 1974 Herstatt Bank Crisis and its Implications for International Regulatory Reform, Emmanuel Mourlon-Druol, Business History, Vol. 57, Iss. 2, 2015, ISSN 0007-6791 (Print), 1743-7938 (Online). | |||
Revision as of 14:52, 3 October 2015
Continuous linked settlement
Foreign exchange settlement risk caused by delays arising from time-zone differences.
Named after Herstatt Bank, which went into compulsory liquidation in 1974, having received funds but not paid out under a number of significant intra-day cross-border transactions.
See also
External Link
- A comprehensive historical account of the Herstatt crisis by Emmanuel Mourlon-Druol is available here[1]. ‘Trust is good, control is better’: The 1974 Herstatt Bank Crisis and its Implications for International Regulatory Reform, Emmanuel Mourlon-Druol, Business History, Vol. 57, Iss. 2, 2015, ISSN 0007-6791 (Print), 1743-7938 (Online).
