a uniform payments system for the gcc single currency the gulf integration project
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World Bank Payment System Conference May 29, 2007. A Uniform Payments System for the GCC Single Currency The Gulf Integration Project. Ali Alhomidan Saudi Arabian Monetary Agency “SAMA”. Agenda. Overview Achievements Payment Systems Committee Objectives Issues under discussion - PowerPoint PPT PresentationTRANSCRIPT
A Uniform Payments System for the GCC Single Currency
The Gulf Integration Project
Ali AlhomidanSaudi Arabian Monetary Agency “SAMA”
World BankPayment System ConferenceMay 29, 2007
Agenda
OverviewAchievementsPayment Systems CommitteeObjectivesIssues under discussionSystem optionsIssues
Overview
Cooperation Council for the Arab States of the Gulf was established in May 1980 (www.gcc-sg.org)
Member states: Bahrain, Emirates, Kuwait, Oman, Qatar, Saudi Arabia
Common social, economic and cultural background
Advanced payment system infrastructure
Active region with largest economy in the Middle East
Local and international bank presence (retail & corporate)
Funds transfers and large financial business exchange between GCC countries
Achievements in Payments System integration
Standard RTGS format
GCC Net (ATMs / POS) Connection (one standard)
Operating rules and regulations
Banking Supervision
GCC website
On going cooperation with Monetary Union Committee
Connection between RTGS systems is planned
GCC Payments System Committee
Payments System Committee (PSC)
Series of meetings and Workshops (1999–Present) Research & Proposals
Task Forces Payments system Single currency payment system ATM & Smart Card Gulf networks connection
The committees report directly to GCC-CB Governors
Strategic Objectives
Identify a common payments system infrastructure appropriate to the needs of the GCC common currency
An operational RTGS payment system between all GCC countries by 2010.
Cross border payments between all financial sector participants via central banks
Liquidity transfers in common currency
Settlement of securities transactions
Money market transactions
GCC – ATM, POS and Credit Card settlements
Business Objectives
Safe & reliable mechanism for settlement of common currency payments on RTGS basis
Increase efficiency of cross-border payments within the GCC area
Capable of processing both Interbank & Customer payments
Support common currency monetary policy
Compatible with national payments systems of member states
Appropriate for the business needs of the region
Capable of further development in line with growth in use and needs of the common currency
PSC – issues under discussion
Proposing GCC - RTGS connection options (the strategy)
The current RTGS system
Continues effort to collect the user requirements
Risk & Change Management
Collateral Policy
Business Cycle and GCC - RTGS harmonization
Development methodology / Project management
Consultancy assistance
The serious involvement from all stakeholders
International Cooperation
Bank of International Settlement (BIS) World Bank (WB) International Monetary Fund (IMF) European Central Bank (ECB) Arab Monetary Fund (AMF)
Other education and learning activities
Workshops & Seminars Conferences, and awareness campaigns Shared visits to each country in GCC region
GCC RTGS Options
1. Fully integrated system Single system for all payments in the GCC
2. Semi-centralized GCC RTGS system Central system with National systems linked to
centre
3. Fully distributed system National systems inter-linked multilaterally with
no central system
Connection Strategy “under discussion”
2. 2. Semi-Centralized SystemSemi-Centralized System
3. Fully Distributed System
1 .Fully Integrated System
Semi-Centralized – Option 2
UAE
Integrated GCC RTGS System
Saudi Arabia
Qatar
Oman
Bahrain
KuwaitRTGS
RTGS
RTGS
RTGSRTGS
RTGS
Fully Distributed – Option 3
Saudi Arabia
UAE
Qatar
Oman
Bahrain
KuwaitRTGS
RTGS
RTGS
RTGS
RTGS
RTGS
Issues
Collecting the detailed GCC payment system requirements
Commitment of resources
Stake holders...(convincing)
Single currency group movements (parallel movements)
Frequency of meetings and time allocated Time constraint to achieve the “go live”
Thank [email protected]