Large Value Transfer System: Difference between revisions
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{{Short description|Money-wiring process in Canada}} | {{Short description|Money-wiring process in Canada}} | ||
The '''Large Value Transfer System''', or '''LVTS''', was the primary system in [[Canada]] for electronic [[wire transfer]]s of large sums of money, and was operated by [[Payments Canada]]. It permitted the participating institutions and their clients to send large sums of money securely in real-time with complete certainty that the payment will settle. In September 2021, Payments Canada replaced LTVS with its '''Lynx''' high-value payment system.<ref>{{Cite web|date=2021-08-26|title=High-value payment system - Lynx|url=https://www.payments.ca/high-value-payment-system-lynx|access-date=2021-09-06|website=Payments Canada|language=en}}</ref><ref name=":0">{{Cite web|date=2021-07-20|title=High-value payment system - LVTS|url=https://www.payments.ca/high-value-payments|access-date=2021-09-06|website=Payments Canada|language=en}}</ref><ref>{{Cite web|title=A road map to payment systems|url=https://www.bankofcanada.ca/2020/07/a-road-map-to-payment-systems/|access-date=2021-08-27|website=Bankofcanada.ca|language=en-US}}</ref> | The '''Large Value Transfer System''', or '''LVTS''', was the primary system in [[Canada]] for electronic [[wire transfer]]s of large sums of money, and was operated by [[Payments Canada]]. It permitted the participating institutions and their clients to send large sums of money securely in real-time with complete certainty that the payment will settle. In September 2021, Payments Canada replaced LTVS with its '''Lynx''' high-value payment system.<ref>{{Cite web|date=2021-08-26|title=High-value payment system - Lynx|url=https://www.payments.ca/high-value-payment-system-lynx|access-date=2021-09-06|website=Payments Canada|language=en}}</ref><ref name=":0">{{Cite web|date=2021-07-20|title=High-value payment system - LVTS|url=https://www.payments.ca/high-value-payments|access-date=2021-09-06|website=Payments Canada|language=en|archive-date=2022-08-12|archive-url=https://web.archive.org/web/20220812112601/https://www.payments.ca/high-value-payments|url-status=dead}}</ref><ref>{{Cite web|title=A road map to payment systems|url=https://www.bankofcanada.ca/2020/07/a-road-map-to-payment-systems/|access-date=2021-08-27|website=Bankofcanada.ca|language=en-US}}</ref> | ||
Established in 1999,<ref>{{cite web|url=https://www.payments.ca/sites/default/files/payments_canada_our_history_timeline_english.pdf|title=Timeline|website=Payments.ca|access-date=January 29, 2022|language=en}}</ref> LVTS processed the majority of payments made every day in Canada, and was designed to work with funds in [[Canadian dollar]]s (CAD). On a normal business day, it cleared and settled approximately [[Canadian dollar|CA$]]398 billion.<ref name=":0" /> Frequently, when settling the payments made through LVTS between each other, some banks found themselves with extra funds while others found themselves short; to come up with money, the banks were able borrow it from each other for a day, or "overnight". The rate at which they borrowed being called [[overnight rate]], targets for which were set by the [[Bank of Canada]] as part of its [[monetary policy]].{{cn|date=May 2014}} | Established in 1999,<ref>{{cite web|url=https://www.payments.ca/sites/default/files/payments_canada_our_history_timeline_english.pdf|title=Timeline|website=Payments.ca|access-date=January 29, 2022|language=en|archive-date=March 2, 2022|archive-url=https://web.archive.org/web/20220302164641/https://www.payments.ca/sites/default/files/payments_canada_our_history_timeline_english.pdf|url-status=dead}}</ref> LVTS processed the majority of payments made every day in Canada, and was designed to work with funds in [[Canadian dollar]]s (CAD). On a normal business day, it cleared and settled approximately [[Canadian dollar|CA$]]398 billion.<ref name=":0" /> Frequently, when settling the payments made through LVTS between each other, some banks found themselves with extra funds while others found themselves short; to come up with money, the banks were able borrow it from each other for a day, or "overnight". The rate at which they borrowed being called [[overnight rate]], targets for which were set by the [[Bank of Canada]] as part of its [[monetary policy]].{{cn|date=May 2014}} | ||
LVTS was a real-time payment system: the recipient of the payment received it irrevocably in near real-time. As it settled on a deferred net basis at the end of each day, it was not a [[real-time gross settlement|real-time gross settlement system]].<ref>{{Cite web | url=https://www.payments.ca/about-us/our-systems-and-rules/large-value-transfer-system |title = Large Value Transfer System|website=Payments.ca|date =August 3, 2016}}</ref> | LVTS was a real-time payment system: the recipient of the payment received it irrevocably in near real-time. As it settled on a deferred net basis at the end of each day, it was not a [[real-time gross settlement|real-time gross settlement system]].<ref>{{Cite web | url=https://www.payments.ca/about-us/our-systems-and-rules/large-value-transfer-system | title=Large Value Transfer System | website=Payments.ca | date=August 3, 2016 | access-date=October 23, 2019 | archive-date=July 31, 2021 | archive-url=https://web.archive.org/web/20210731051607/https://www.payments.ca/about-us/our-systems-and-rules/large-value-transfer-system | url-status=dead }}</ref> | ||
== Participating institutions == | == Participating institutions == | ||
{{As of| | {{As of|2025|July}}, there were 16 institutions, including the [[Bank of Canada]], participating in LVTS:<ref>{{cite web|date=August 2, 2016|title=High-Value System (LVTS) Participants|url=https://www.payments.ca/our-directories/high-value-system-lvts-participants|access-date=2021-08-26|website=Payments Canada}}</ref> | ||
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*[[Canadian Imperial Bank of Commerce|CIBC]] | *[[Canadian Imperial Bank of Commerce|CIBC]] | ||
*[[Central 1 Credit Union]] (which represents BC and Ontario credit unions)<ref>{{cite web|url=https://www.fitchratings.com/research/banks/fitch-affirms-central-1-credit-union-at-a-outlook-stable-15-10-2020|title=Fitch Affirms Central 1 Credit Union at 'A-'; Outlook Stable|website=Fitchratings.com|access-date=January 29, 2022}}</ref> | *[[Central 1 Credit Union]] (which represents BC and Ontario credit unions)<ref>{{cite web|url=https://www.fitchratings.com/research/banks/fitch-affirms-central-1-credit-union-at-a-outlook-stable-15-10-2020|title=Fitch Affirms Central 1 Credit Union at 'A-'; Outlook Stable|website=Fitchratings.com|access-date=January 29, 2022}}</ref> | ||
*[[Citibank]] | |||
*[[Desjardins Group]] (French: ''Fédération des caisses Desjardins du Quebec'') | *[[Desjardins Group]] (French: ''Fédération des caisses Desjardins du Quebec'') | ||
*[[ICICI Bank#ICICI Bank Canada|ICICI Bank Canada]] | *[[ICICI Bank#ICICI Bank Canada|ICICI Bank Canada]] | ||
*[[Laurentian Bank of Canada]] | *[[Laurentian Bank of Canada]] | ||
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== External links == | == External links == | ||
*[https://www.payments.ca/high-value-payments Canadian Payments Association's LVTS Overview] | *[https://www.payments.ca/high-value-payments Canadian Payments Association's LVTS Overview] {{Webarchive|url=https://web.archive.org/web/20220812112601/https://www.payments.ca/high-value-payments |date=2022-08-12 }} | ||
*[https://www.payments.ca/our-directories/high-value-system-lvts-non-participant-partners A list of LVTS non-participant partners (usually smaller financial institutions)] | *[https://www.payments.ca/our-directories/high-value-system-lvts-non-participant-partners A list of LVTS non-participant partners (usually smaller financial institutions)] | ||
Latest revision as of 09:21, 31 July 2025
Template:Short description The Large Value Transfer System, or LVTS, was the primary system in Canada for electronic wire transfers of large sums of money, and was operated by Payments Canada. It permitted the participating institutions and their clients to send large sums of money securely in real-time with complete certainty that the payment will settle. In September 2021, Payments Canada replaced LTVS with its Lynx high-value payment system.[1][2][3]
Established in 1999,[4] LVTS processed the majority of payments made every day in Canada, and was designed to work with funds in Canadian dollars (CAD). On a normal business day, it cleared and settled approximately CA$398 billion.[2] Frequently, when settling the payments made through LVTS between each other, some banks found themselves with extra funds while others found themselves short; to come up with money, the banks were able borrow it from each other for a day, or "overnight". The rate at which they borrowed being called overnight rate, targets for which were set by the Bank of Canada as part of its monetary policy.Script error: No such module "Unsubst".
LVTS was a real-time payment system: the recipient of the payment received it irrevocably in near real-time. As it settled on a deferred net basis at the end of each day, it was not a real-time gross settlement system.[5]
Participating institutions
since July 2025[update]Template:Dated maintenance category (articles)Script error: No such module "Check for unknown parameters"., there were 16 institutions, including the Bank of Canada, participating in LVTS:[6]
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- ATB Financial
- Bank of America National Association
- Bank of Canada
- Bank of Montreal
- BNP Paribas (Canada)
- CIBC
- Central 1 Credit Union (which represents BC and Ontario credit unions)[7]
- Citibank
- Desjardins Group (French: Fédération des caisses Desjardins du Quebec)
- ICICI Bank Canada
- Laurentian Bank of Canada
- National Bank of Canada
- Royal Bank of Canada
- Scotiabank
- State Street Bank and Trust Company
- Toronto-Dominion Bank
See also
References
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