Central Banks and Payment System Risks: Comparative Study

Document Type

Book Chapter

Publication Date

5-28-2018

Source Publication

Conti-Brown, Peter, et al. Research Handbook on Central Banking. Edward Elgar Pub., Inc., 2018

Abstract

The chapter examines the role of central banks in addressing risks _in payment systems. Providing first an overview of payment systems and traditional central banking, the chapter moves on to outline the policy discussion that led to fastening on central banks the role of payment system regulators. It further endeavours to curve a territory for central banks' specific role in addressing payment system risks in the broader context of their role as guardians of financial stability. Proceeding to discuss legislation governing central banks' powers in relation to payment system risks in the UK, Canada, Australia and South Africa, the chapter assesses the efficacy of this legislation. In conclusion, the chapter highlights the assignment to the ESCB of the responsibility for the smooth operation of the payment system as capturing the essence of the regulatory role of central banks in payment systems.

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