The Role of Central Bank Money in Payment Systems

The role of central bank money in payment systems......Page 1
Foreword......Page 3
Table of Contents......Page 5
Executive summary and introduction......Page 9
1.The coexistence of central and commercial bank money in payment systems......Page 15
1.1Central bank money and central bank objectives......Page 16
1.2.1Simple models of how payment systems function......Page 17
Risks relating to the settlement institution......Page 19
Risks between direct participants and their customers......Page 20
1.3Factors determining agents’ choice of settleme......Page 21
2.1Influences on payment systems......Page 24
2.2.1The choice between direct participation and non-participation......Page 26
2.2.2Concentrations of payment flows......Page 28
3.1Settlement in central bank money by systems......Page 30
3.2Provision of central bank money to individual institutions......Page 32
Banks......Page 34
Non-resident banks......Page 35
Non-banks......Page 36
3.2.2Access to credit......Page 38
3.3.1The requirement for individual institutions to settle in central bank money......Page 39
3.4Conclusion......Page 40
4.1Access policy......Page 41
Neutrality......Page 42
4.1.2Examples of policy reviews......Page 43
4.2System design and central bank settlement services......Page 44
Reducing liquidity costs at the international level......Page 45
Enhancing business efficiency......Page 46
Central bank multicurrency settlement services......Page 47
4.3Oversight, supervision and regulation......Page 48
5.Concluding remarks......Page 50
Annexes......Page 55
Annex 1 Central bank policies......Page 56
Annex 2 Access policy - specific cases......Page 85
Annex 3 Detailed tables......Page 89
Annex 4 Banknotes......Page 104
Annex 5 Members of the CPSS......Page 115
Annex 6 Members of the Working Group......Page 116