International Monetary FundWorld Bank2017-05-092017-05-092012-03https://hdl.handle.net/10986/26547People'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).en-USCC BY 3.0 IGOACCESS TO PAYMENT SERVICESACCOUNT MANAGEMENTACCOUNTINGAGRICULTURAL BANKANTI-MONEY LAUNDERINGATMATM TERMINALSBANK ACCOUNTBANK BONDBANK BOND MARKETBANK BRANCHESBANK CARDBANK REGULATIONBANKING INDUSTRYBANKING INSTITUTIONSBANKRUPTCYBANKRUPTCY LAWBILL OF EXCHANGEBILL PAYMENTSBONDBOND MARKETSCAPITAL MARKETSCASH PAYMENTCASH TRANSACTIONSCENTRAL BANKCENTRAL BANK BILLSCENTRAL DEPOSITORYCHECKSCIVIL LAWCLEARING CORPORATIONCLEARING HOUSECOLLATERALCOLLATERALIZATIONCOMMERCIAL BANKCONSUMER PROTECTIONCONSUMER PROTECTION LAWCONTRACT LAWCORPORATE SECURITIESCORRESPONDENT BANKSCREDIT COOPERATIVESCREDIT INFORMATIONCREDIT RISKCREDIT TRANSFERSCREDIT UNIONSCURRENCY TRANSACTIONSDEBIT CARDSDEPOSITDEPOSIT ACCOUNTDERIVATIVEDERIVATIVE TRANSACTIONSDEVELOPMENT BANKDIRECT DEBITSDOMESTIC BANKSELECTRONIC EXCHANGEELECTRONIC PAYMENTELECTRONIC PAYMENT SYSTEMELECTRONIC SIGNATUREELECTRONIC TRANSACTIONSEMERGENCY RESPONSEEQUIPMENTEXCHANGE RATEFEDERAL RESERVEFEDERAL RESERVE BANKFINANCIAL INSTITUTIONFINANCIAL MARKETFINANCIAL RISKSFINANCIAL SERVICESFINANCIAL SYSTEMFIXED ASSETSFOREIGN BANKSFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE TRANSACTIONFUND TRANSFERGOVERNMENT BONDSGOVERNMENT SECURITIESGROSS DOMESTIC PRODUCTHIGH VALUE PAYMENT SYSTEMHOLDINGHUMAN RESOURCEIDENTIFICATIONINFORMATION SYSTEMINFORMATION TECHNOLOGYINSTITUTIONAL INVESTORSINSTRUMENTINTEREST RATEINTERNAL CONTROLINTERNATIONAL BANKINTERNATIONAL SETTLEMENTSINTERNATIONAL STANDARDSISSUANCELARGE VALUE TRANSFER SYSTEMSLEGAL AUTHORITYLEGAL FRAMEWORKLEGAL STATUSLETTERS OF CREDITLIQUIDITYLIQUIDITY MANAGEMENTLIQUIDITY POSITIONLIQUIDITY RISKLOCAL BANKSLOW VALUE PAYMENTLOW VALUE PAYMENT SYSTEMMANAGEMENT INFORMATIONMANAGEMENT OF RISKSMANAGEMENT SYSTEMMARK-TO-MARKETMARKET MECHANISMSMARKET PARTICIPANTSMARKET SHARESMONETARY FUNDMONEY LAUNDERING LAWMONEY SETTLEMENTMORAL SUASIONNATURAL DISASTERSNEGOTIABLE INSTRUMENTSOPERATIONAL RISKSOPPORTUNITY COSTPAPER INSTRUMENTSPAYMENT APPLICATIONPAYMENT CARDPAYMENT CLEARINGPAYMENT INSTRUMENTPAYMENT ORDERSPAYMENT SERVICEPAYMENT SYSTEMSPAYMENT TRANSACTIONSPAYMENTS INSTRUMENTSPAYMENTS SYSTEMPOSTAL SAVINGSPROMISSORY NOTESPROXYPUBLIC POLICYREAL-TIME GROSS SETTLEMENTREGULATORY AUTHORITYREGULATORY FRAMEWORKREMITTANCEREMITTANCE SERVICESRESERVE FUNDRESERVE REQUIREMENTSRESERVESRETAIL INVESTORSRETAIL PAYMENTRETAIL PAYMENT SYSTEMSRETURNREVOLVING FUNDRISK CONTROLRISK MANAGEMENTRISK MANAGEMENT TOOLSRISK PROFILESRTGSRURAL BANKSRURAL CREDITSAVINGS BANKSECURITIESSECURITIES LAWSECURITIES REGISTRATIONSECURITIES SETTLEMENTSECURITIES TRANSACTIONSSECURITY REQUIREMENTSSERVICE PROVIDERSSETTLEMENTSETTLEMENT PROCEDURESSETTLEMENT RISKSETTLEMENT SERVICESSETTLEMENT SYSTEMSPOT MARKETSTAKEHOLDERSSTOCK EXCHANGESSWAPSYSTEM DESIGNSYSTEM FAILURESTELECOMMUNICATIONSTELEPHONE BANKINGTRADINGTRADING SYSTEMTRANSACTIONTRANSACTION AUTHORIZATIONTRANSPARENCYTURNOVERVALUE PAYMENT SYSTEMWITHDRAWALReportWorld Bank10.1596/26547