Do Norwegian Payment Systems Satisfy the New BIS Recommendations?

Abstract

A long-standing concern of central banks has been the risks in payment systems. One concern has been that the systems are organised so that one participant's financial problems could spread to other participants, and that the problems could intensify to the extent that they threaten financial stability. Under the Act of 1999 relating to Payment Systems, Norges Bank is responsible for authorising and supervising systemically important payment systems. A thorough analysis of the risks associated with the systems is a key element in evaluating the applications for authorisation. In this connection, Norges Bank evaluated whether the systems satisfy the most recent recommendations of the Group of Ten Committee on Payment and Settlement Systems under the Bank for International Settlement (BIS).