Publication: Reforming Payments and Securities Settlement Systems in Latin America and the Caribbean
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Published
2007
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2012-05-30
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The payments and securities settlement system is the infrastructure (comprising institutions, instruments, rules, procedures, standards, and technical means) established to effect the transfer of monetary value between parties discharging mutual obligations. A securities clearance and settlement system can be considered as part of the overall payment mechanisms of a country, in that it satisfies the main features of this overall definition The purpose of this book is to (a) extract the main lessons and experiences of the Western Hemisphere Payments and Securities Clearance and Settlement Initiative - Western Hemisphere Payments and Securities Settlement Forum (WHI-WHF) regarding the implementation of various reforms; (b) describe status of and major trends in payments and securities settlement systems worldwide and their implications for the LAC region; (c) summarize the detailed assessment findings for each LAC country in the following fields: (1) legal and regulatory framework, (2) main characteristics of the inter-bank exchange and settlement circuits, (3) retail settlement systems, (4) the role of the government as a major participant in the payments system, (5) foreign exchange and cross-border settlement, (6) the operation of the inter-bank money market, (7) aspects related to securities settlement such as the legal framework, clearance and settlement processes, settlement risks, operational reliability, custody, depositories' organizational arrangements, cross-border links, and (8) the oversight role of the central bank, coordination with the regulatory and supervisory role over securities settlement, and cooperation with the private sector; and (d) propose practical observations regarding the implementation of payments and securities settlement system reforms in the LAC region.
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“Cirasino, Massimo; Guadamillas, Mario; García, José Antonio; Montes-Negret, Fernando. 2007. Reforming Payments and Securities Settlement Systems in Latin America and the Caribbean. © World Bank. http://hdl.handle.net/10986/6630 License: CC BY 3.0 IGO.”
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Publication Securities Clearance and Settlement Systems : A Guide to Best Practices(World Bank, Washington, DC, 2001-04)As an essential part of a nation's financial sector infrastructure, securities clearance, and settlement systems must be closely integrated with national payment systems, so that safety, soundness, certainty, and efficiency can be achieved at a cost acceptable to all participants. Central banks have paid considerable attention to payment systems, but securities clearance, and settlement systems have only recently been subjected to rigorous assessment. The Western Hemisphere Payments and Securities Clearance and Settlement Initiative (WHI), led by the World Bank, and in cooperation with the Centro de Estudios Monetarios Latinoamericanos (CEMLA), gave the authors a unique opportunity to observe how various countries in Latin America, and the Caribbean undertake securities clearance, and settlement. 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Essentially, an assessment involves a structured analysis to answer four related questions: 1) What are the objective, and scope of a securities clearance and settlement system? 2) Who are the participants, what roles do they play, and what expectations do they have? 3) What procedures are required to satisfy the participants' needs? 4) What inherent risks are involved, and how can they be mitigated at an acceptable cost?Publication El Salvador Financial Sector Assessment Program Update(Washington, DC, 2010-11)Payment systems are a core part of all financial systems. The quality of payment systems determines the stability of the overall economy, the efficiency and reliability of financial intermediation, and the possibility for the private sector to innovate and provide new services to consumers. This technical note presents the results of the assessment of payments, remittances, and securities settlement processes in El Salvador, based on international standards and best practices. It includes several observations for the improvement of the National Payments System (NPS) in El Salvador. This note takes into account the peculiarities of the jurisdiction of El Salvador: namely, the relatively small size of the financial system and the dollarized nature of the economy. The central bank and other institutions are already planning appropriate actions on many of the issues discussed. In some cases, however, the team identified additional elements, which are discussed in this note.Publication People's Republic of China Financial Sector Assessment Program(World Bank, Washington, DC, 2012-03)People's Bank of China (PBC) has carried out a major and comprehensive reform of the China National Payments System (CNPS). The PBC implemented the China National Advanced Payment System (CNAPS), which consists of the High-Value Payment System (HVPS) and the Bulk Electronic Payment System (BEPS). The HVPS system currently operates in a tiered way with a national processing center (NPC) and 32 local processing centers (LCPs). The HVPS system is interconnected to many trading, payments, and securities settlement systems (SSS) to allow for central bank money settlement. In addition, there is numerous cheque clearing houses around the country administered by the PBC local offices or delegated to banks. China Union Pay (CUP) handles the clearance of cards transactions whose balances are settled in the HVPS. Also automated clearinghouses (ACHs) and other systems handle clearance and settlement for a variety of payment instruments. The HVPS is a systemically important payment system, as it is the backbone of the national payments system in China. The HVPS handled transactions for a value of CY 804 trillion in 2009, approximately 24 times the Gross Domestic Product (GDP) value. Thus, the HVPS is being assessed against the ten Core Principles for Systemically Important Payment Systems (CPSIPS) of the Committee for Payment and Settlement Systems (CPSS) and the four responsibilities of the central banks in applying the CPSIPS. The BEPS is not currently a systemically important payment system. However, its importance for an efficient settlement of the interbank payment system is growing. The present document is the assessment of the systemically important payment systems in the People's Republic of China (PRC) based on the CPSS CPSIPS. The document also contains an analysis of some developmental issues related to the reform of the payments system as a whole. The assessment was conducted in the context of the first field mission of the Financial Sector Assessment Program (FSAP) to the PRC (June 2010).Publication Payment Systems Worldwide - A Snapshot : Outcomes of the Global Payment Systems Survey 2010(World Bank, Washington, DC, 2011)Global survey outcomes presented in this publication are divided into two main sections: Chapters I through VIII analyze the survey results and identify trends using various variable for cross-country comparisons. In addition to worldwide totals, three broad country characteristics exogenous to payment system development are used as a basis for comparisons: i) level of per capita income; ii) geographical location; iii) population size. Details of the methodology used for the analysis are covered in the Methodological Note. The Appendix contains the full set of countryby- country answers to each of the questions included in the questionnaire.Publication Financial Sector Assessment Program : Saudi Arabia - CPSS Core Principles for Systematically Important Payment Systems(World Bank, Washington, DC, 2011-09)The present document is the assessment of the systemically important payment systems in the Kingdom of Saudi Arabia (KSA) based on the CPSS Core Principles for Systemically Important Payment Systems (CPSIPS). The document also contains an analysis of some developmental issues related to the reform of the payments system as a whole. The assessment was conducted in the context of the field mission of the Financial Sector Assessment Program (FSAP) Update to the KSA (April 2011). The assessor of the CPSIPS was Massimo Cirasino. The national payments system (NPS) in Saudi Arabia efficiently serves the needs of a broad set of users. In particular, SAMA has implemented a comprehensive and robust infrastructure to support the provision of payment services and products by commercial banks. The infrastructure is primarily concentrated on payments in riyals and comprises the following systems: (i) the Saudi Arabian Riyal Interbank Express (SARIE) real time gross settlement (RTGS) system, which processes a wide range of large-value and small-value payments and provides settlement facilities for a number of clearing systems, as well as for transactions executed at the Tadawul stock exchange; (ii) the check clearing houses operated at SAMA branches; (iii) automated teller machine (ATM) and point-of-sale services provided through Saudi payments network; (iv) electronic bill presentment and payment processed by the national electronic bill presentment and payment service; (v) the Public Key Infrastructure (PKI) which provides advanced security facilities; and (vi) the SAMA Joint Network (SJN) providing a highly secured communications network. The NPS in Saudi Arabia is characterized by a high level of standardization.
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