Payment Systems: Design, Governance and Oversight

Book description

To produce this handbook for those who oversee, operate and use payment systems, editor Bruce J. Summers draws on his three decades of experience in payment systems at the Federal Reserve and as a consultant for the World Bank, International Monetary Fund and central banks and brings together authors with practical industry experience from around the world.

Contributors include:

Joaquin Bernal, Banco de la República (Colombia); Ron Berndsen, The Netherlands Bank; Hemant Baijal, The World Bank; Wilko Bolt, The Netherlands Bank; Bob Chakravorti, The Clearing House; Terry Goh, Monetary Authority of Singapore; Philipp Haene and Robert Oleschak, Swiss National Bank; Richard Heckinger, Federal Reserve Bank of Chicago; Daniel Heller, Committee on Payment and Settlement Services; Mandy Lam, Sifma; Esmond Lee, Hong Kong Monetary Authority; Ricardo Medina, Bank of Mexico; Harish Natarajan, The World Bank; Knut Sandal, Norges Bank; Larry Sweet, Federal Reserve Bank of New York; Harry Newman, SWIFT; Paul Smee, formerly head of the UK Payments Council; Carlo Tresoldi, Sia; John Trundle, Euroclear; Sean O'Conner, The World Bank; Jonathan Williams, Experian and Gerard Hartsink, European Payment Council.

The role of payment and settlement systems in mitigating financial risk and ensuring financial stability during the recent economic crisis followed by initiatives to increase their use in the OTC markets for credit default swaps have become headline news in the financial press.  Further, the efficiency and safety of retail payment systems now command attention due to the prominence of the consumer sector in modern economies (for example, an estimated US$225 billion in non-cash retail payments are made each day in the United States alone).

Public sector overseers have adopted a broad system-wide perspective that relies on official guidance as well as regulation to achieve public policy goals for safety, effectiveness, and efficiency.  Their official guidance includes international standards for the design and operation of payment and settlement systems promulgated by the Bank for International Settlements.  The timeliness of this book is underscored by the BIS announcing a comprehensive review of the international standards in February 2010.

Book details

ISBN

9781902182728

Publish date

18 Jun 2012

Format

Paperback

Size

230mm x 280mm

Author biography

Bruce J. Summers

Bruce J. Summers was National Product Manager for Fedwire and ACH, and served as Deputy director at the Board of Governors for payment system policy and oversight of the banking services and IT activities of the 12 Federal Reserve Banks. He has contributed to the international initiatives of central banks through the BIS and to the work of the Fund and World Bank. He retired from the Fed in 2007 as Director of Federal Reserve Information Technology and now consults on payment systems and technology management.

Table of contents

Foreword

Acknowledgements

Payment Systems—Why They Matter

1.  Payment system design and public policy
2. Financial market infrastructures
   1. Inter-bank money markets
   2. Securities markets
   3. Derivatives markets
   4. Foreign exchange markets
3. General purpose payment systems
   1. Payment systems for individuals, businesses, and governments
   2. Innovations in retail payments
   3. The problem of fraud and identity theft
4. Technology, operational performance, and security
5. Central bank services

Governance—Ensuring Performance Excellence

1. Ownership and governance models
2. Access by users and operators
3. Rules and standards
4. Pricing practices

Oversight—Promoting the Public Interest

1. Purpose of oversight—why do it
2. Organizing the oversight function
3. Oversight methods and tools
4. Compliance with laws and regulations

Case Studies

1. Swiss Interbank Clearing:  evolution and continuous improvement in RTGS
2. M-PESA:  mobile payment innovation in Kenya
3. A Nordic country: standards development and adoption
4. CLS Bank:  international cooperation to mitigate foreign exchange risk
5. An Asian country: oversight as a catalyst for strategic innovation

Index