Payment Systems: From the Salt Mines to the Board Room (Palgrave Macmillan Studies in Banking and Financial Institutions)

Contents......Page 8
List of Figures......Page 12
List of Tables......Page 14
Acknowledgements......Page 15
Foreword......Page 16
Commonly Used Abbreviations and Acronyms......Page 18
Introduction......Page 22
Part I: The Structure and Economics of Payment Systems......Page 26
1 The Architecture of Payment Systems......Page 28
1 Introduction and basic concepts......Page 29
2 Participants in a payment system......Page 32
3 Payment operations......Page 38
4 Standards......Page 44
5 Efficiency criteria for payment systems......Page 45
1 Characteristics of payment instruments......Page 48
2 Cash......Page 50
3 Cheques......Page 51
4 Credit transfers......Page 53
5 Direct debits......Page 55
6 Cards......Page 57
7 Payment channels......Page 63
8 Statistics and comparative trends......Page 64
1 Correspondent banking......Page 68
2 The SWIFT network......Page 71
4 Remittances......Page 74
4 Risks in Payment Systems, Oversight and Security......Page 77
1 Analysis of risks in payment systems......Page 78
2 Risk management......Page 80
3 Regulatory oversight......Page 87
4 Fraud prevention, security and anti money laundering......Page 88
1 The economic role of payment systems......Page 94
2 Payment systems and money velocity......Page 95
3 Network economics......Page 97
Part II: Overview of Current Payment Systems......Page 100
1 SEPA......Page 102
2 The Payment Services Directive (PSD)......Page 104
3 The TARGET2 RTGS system......Page 106
5 The EBA payment systems......Page 111
6 The SEPA schemes and frameworks......Page 113
7 Business and operational impact of SEPA......Page 116
8 The UK payment systems......Page 121
7 The US Payment Systems......Page 128
1 Fedwire......Page 129
3 CHIPS......Page 130
4 The ACH Network......Page 132
5 Cheques......Page 133
6 Cards......Page 134
7 Trends......Page 135
8 Overview of the US securities clearing and settlement systems......Page 137
8 Major Asian Payment Systems......Page 139
1 Payment and securities clearing and settlement systems in Japan......Page 140
2 Payment and securities settlement systems in China and Hong Kong SAR......Page 146
1 Remittance service providers......Page 155
3 Transport cards......Page 156
4 Mobile phones and mobile payments......Page 157
5 Paypal......Page 159
6 Earthport......Page 160
Part III: The Settlement of Trading Activities......Page 162
1 The settlement of foreign exchange trades and settlement risk......Page 164
2 CLS......Page 167
3 CLS operating procedures and timetable......Page 169
4 Risk and liquidity management in CLS......Page 170
5 Market and business impact of CLS......Page 171
11 Securities Settlement......Page 173
1 Securities clearing and settlement systems......Page 174
2 Risks in securities settlement systems......Page 175
3 Settlement risk management......Page 176
4 Consolidation of exchanges and the clearing and settlement landscape......Page 177
5 TARGET2-Securities......Page 181
Part IV: Wholesale Payment, Cash Management and Trade Facilitation Services......Page 184
12 The Requirements of Corporations......Page 186
1 The role of the treasury department......Page 187
2 Electronic invoicing......Page 190
3 Supply chain finance (SCF)......Page 193
1 Electronic banking and communication channels......Page 197
2 Reporting, cash management and treasury services......Page 198
4 Fees and remuneration......Page 199
5 Selection criteria......Page 200
Part V: Banks and the Payments Business......Page 202
1 Payment processing and STP......Page 204
3 Operations......Page 208
4 IT systems......Page 209
2 The economics and profitability of payments services......Page 213
4 Development of an enterprise-wide payments strategy......Page 215
Part VI: The Future......Page 218
1 Instruments......Page 220
2 Payment systems architectures, schemes, standards and operators......Page 222
4 Governance and oversight......Page 225
5 Settlement of financial markets trading......Page 226
7 Corporate banking......Page 227
10 Revenue shifts and shrinkage......Page 228
Conclusion......Page 230
Appendix......Page 232
Notes......Page 233
Bibliography and Useful Websites......Page 238
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