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Payment systems are an essential
mechanism supporting the effectiveness
of financial markets. A properly
functioning payments system facilitates
prompt and secure settlement of
securities and other transactions and
contributes to the reduction or
elimination of principal risk.
Disruption in the payment systems could
threaten the stability of money markets
and of other domestic and international
financial markets. Likewise, disruption
in the securities settlement systems
could result in a serious liquidity
pressure in the market and spill over
to payment systems. Robust payments and
settlement systems are, therefore, a
key requirement in maintaining and
promoting financial stability.
A set of ten
core principles, and four
responsibilities of central banks in
applying them have been developed for
the payment systems.
Last updated:
September 3, 2009
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