Payment and settlement systems subject to oversight

Abstract

Payment and settlement systems comprise the financial market infrastructure. A reliable, undisrupted infrastructure makes economic activity a smoother process and promotes the efficient movement of capital. It allows financial institutions to make payments and settle securities transactions. There are also risks involved, however, and if these become widespread, they can affect the stability of the financial markets and society as a whole. Central bank oversight aims to reduce the risks associated with payment and settlement systems.