Systemically Important Payment System: Difference between revisions

Revision as of 05:56, 12 May 2013

Revision as of 20:56, 1 April 2015

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==Core principles (Summary)==

A Systemically Important Payment Systems (SIPS) should have:-

1...# A well-founded legal basis

2...# Rules & procedures which enable participants to have a clear understanding of the system’s impact on each of the financial risks they incur through participation in it.

3...# Clearly defined procedures for the management of credit risks and liquidity risks, which specify the respective responsibilities of the system operator and the participants and which provide appropriate incentives to manage and contain those risks

4...# Prompt final settlement on the day of value, preferably during the day and at a minimum at the end of the day.

5...# Where multilateral netting takes place, it should, at a minimum be capable of ensuring the timely completion of daily settlements in the event of an inability to settle by the participant with the largest single settlement obligation

6...# Assets used for settlement should preferably be a claim on the central bank; where other assets are used, they should carry little or no credit risk and little or no liquidity risk

7...# A high degree of security and operational reliability, and contingency arrangements for timely completion of daily processing

8...# Practical for its users and efficient for the economy

9...# Objective and publicly disclosed criteria for participation, which permit fair and open access

10..# Governance arrangements which are effective, accountable and transparent

==See also==

2...Rules & procedures which enable participants to have a clear understanding of the system’s impact on each of the financial risks they incur through participation in it.

* [[List of systemically important banks]]

* [[Systemic risk]]

3...Clearly defined procedures for the management of credit risks and liquidity risks, which specify the respective responsibilities of the system operator and the participants and which provide appropriate incentives to manage and contain those risks

* [[Systemically important financial market utility]]

* [[Systemically important financial institution]]

4...Prompt final settlement on the day of value, preferably during the day and at a minimum at the end of the day.

5...Where multilateral netting takes place, it should, at a minimum be capable of ensuring the timely completion of daily settlements in the event of an inability to settle by the participant with the largest single settlement obligation

6...Assets used for settlement should preferably be a claim on the central bank; where other assets are used, they should carry little or no credit risk and little or no liquidity risk

7...A high degree of security and operational reliability, and contingency arrangements for timely completion of daily processing

8...Practical for its users and efficient for the economy

9...Objective and publicly disclosed criteria for participation, which permit fair and open access

10..Governance arrangements which are effective, accountable and transparent

== References ==