CENTRAL BANK OVERSIGHT OF PAYMENT AND SETTLEMENT SYSTEMS
1.0 COURSE INTRODUCTION
Central banks have always had a close interest in the safety and efficiency of payment and settlement systems. One of the principal functions of central banks is to be the guardian of public confidence in money, and this confidence depends crucially on the ability of economic agents to transmit money and financial instruments smoothly and securely through payment and settlement systems. The systems must therefore be strong and reliable, available even when the markets around them are in crisis and never themselves the source of such crisis.
Oversight of payment and settlement systems is a central bank function whereby the objectives of safety and efficiency are promoted by monitoring existing and planned systems, assessing them against these objectives and, where necessary, inducing change.
Payment and settlement systems enable the transfer of money and financial instruments. Safe and efficient systems are fundamental to money being an effective means of payment and to the smooth functioning of financial markets. Well designed and managed systems help to maintain financial stability by preventing or containing financial crises and help to reduce the cost and uncertainty of settlement, which could otherwise act as an impediment to economic activity. Payment and settlement systems thus play a crucial role in a market economy and central banks have always had a close interest in them as part of their responsibilities for monetary and financial stability.
Central banks are involved in payment and settlement systems in a number of ways. A core role has always been to provide a safe settlement asset for many systems. Many central banks are also operators of one or more systems. In addition, central banks are likely to be users of at least some systems to implement their monetary policy operations and to provide banking services to their own customers. In pursuit of their public policy objectives with respect to monetary and financial stability, central banks have sought to influence the design and functioning of payment and settlement systems; as users and sometimes operators of systems they have acquired expertise in their operation.
Other authorities such as banking supervisors and securities regulators may have legal or other responsibilities for aspects of payment and settlement systems. Where this is the case, central banks are open to cooperation with these authorities in order to minimise the potential duplication of effort and the burden on the overseen systems. In principle, each authority should have well defined responsibilities and specific tools to carry out the responsibilities. By convention, the term oversight is reserved to designate the specific responsibilities and tools central banks have with regard to payment and settlement systems due to their unique character of being both a public authority and a bank.
The concept of central bank oversight of payment and settlement systems (hereafter simply “oversight”) has become more distinct and formal in recent years as part of a growing public policy concern with financial stability in general. Oversight has developed in part in response to the expansion of the role of the private sector in providing payment and settlement systems. Where there has been a risk that the private sector would take insufficient account of negative externalities that could cause systemic risk, central banks have sought to pursue public policy safety and efficiency objectives by guiding and influencing system operators. And whether a system is provided by the private sector or by central banks themselves, the increasing attention to oversight also reflects the very large increase in the values of transfers cleared and settled, the increasing centralisation of activity around a small number of key systems, the increasing technological complexity of many systems and the consequent concern that systemic risk could increase if the design of key systems did not adequately address various payment and settlement risks.
2.0 COURSE OBJECTIVE
Expose participants to the critical roles of Payments and Settlement System (PSS) in safeguarding monetary and financial operations of large value and retail PSS and identify risks in PSS. To enhance participants’ knowledge on identifying and mitigating risks in PSS. To expose participants to the role of central banks on PSS oversight.
3.0 TARGET GROUP
- Back office and payments section staff.
- Cashiers/Tellers in SMEs & MFIS (both new and those who need to enhance their knowledge)
- Customer Service officers.
- Graduate Management Trainees.
- Front-Office Staff.
- Operations officers [front-office or back-office]
- Tellers
- Cash officers and
- Bank, Central Bank and Banking Regulations organization Staff
4.0 COURSE CONTENT
- Introduction/Overview Payment Systems
- Core Principles of security settlement systems
- The regulatory framework for National Payment Systems
- Interconnection in retail payment systems
- Clearing and settlement principles
- Payment standards and security
- Payment Systems and AML
- M- Banking and Payment Systems
- Key issues with mobile payments
- Principles of Financial Markets infrastructure
- Understanding the demand-side for payment services
- Interchange and its effect on a national payment system
- Real Time Gross Settlement System- RTGS
- Risks in Payment Systems
5.0 CERTIFICATION
By the successful completion of your course, you will get a hard copy certificate. Our courses are fully with updated industry knowledge and skills that aim at making you an expert in the field. The hard copy of the certificate is also available and can be sent to your address.
6.0 COURSE METHODOLOGY
The course uses a mix of interactive techniques, such as brief presentations by the consultant, group exercises case studies and using Microsoft office tool to apply knowledge acquired throughout the course followed by participants’ presentations of the results.
7.0 COURSE STRUCTURE
The course duration is 5 full days.
- The course is presented in the form of a power point presentation
- The course includes a Q &A session and some evaluation quizzes
For more information, please contact:
PIERRE DUPLIS BRENNER
The Admission Director
AFRICA INSTITUTE FOR CAPACITY DEVELOPMENT (AICD)
HEAD OFFICE:
21 Detroit Plaza |Pretoria Road|Kempton Park|
Gauteng. SOUTH AFRICA
Telephone : +27 733797377
Whatsapp Number : +27 733797377
Email:info@aicdtraining.com
OUR SERVICES:
TRAINING| SHORT COURSES| CONSULTANCY| RESEARCH| RECRUITMENT| MANAGEMENT CONSULTING
IN PARTNERSHIP WITH:
SADC Institute of Commerce and Industrial Practice
Gauteng. SOUTH AFRICA