Summary and Overview of the Structure Part 5: Inter-bank payment systems
13.Payment systems are networks involving sets of rules, procedures and arrangements for the electronic transfer of money or credit between participating members of the systems. In some cases, payment systems are embedded in clearing and settlement systems for transferring securities and these involve payments in relation to the securities.
14.Payment systems are important for the functioning of financial markets and the economy. The inter-linkages between payment systems, banks and other financial intermediaries mean that problems with payment systems have the potential to spread through the financial system, ultimately affecting businesses and consumers.
15.The Bank of England performs a non-statutory role of the oversight of inter-bank payment systems, in particular promoting the robustness and resilience of key UK payment systems. However, this Part confers formal powers of oversight of “recognised” inter-bank payment systems. The FSA has, and will continue to have following the commencement of this Part, statutory responsibility for the regulation of recognised clearing houses and investment exchanges, which may contain embedded payment systems.
16.This Part formalises the Bank of England’s role in the oversight of payment systems, whilst providing that the Bank of England may continue to oversee inter-bank payment systems on an informal basis where it considers it appropriate.