Publication: People's Republic of China Financial Sector Assessment Program: CPSS Core Principles for Systemically Important Payment Systems
Date
2012-03
ISSN
Published
2012-03
Author(s)
International Monetary Fund
World Bank
Abstract
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).
Citation
“International Monetary Fund; World Bank. 2012. People's Republic of China Financial Sector Assessment Program : CPSS Core Principles for Systemically Important Payment Systems. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/26547?show=full License: CC BY 3.0 IGO.”