Global Payment Systems Survey 2010

Preliminary Outcomes

Global Payments Week 2010 Amsterdam, October 20

Alice Zanza Maria Teresa Chimienti PSDG, The World Bank

Contents

1.  Description of the NEW Global Payment Systems Survey 2010

2.  Current status of responses 3.  Preliminary outcomes. A snapshot

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The Global Payment Systems Survey 2008

  Launched for the first time in 2007   Outcomes were published in 2008. Available at:

www.worldbank.org/paymentsystems   Covered 128 central banks and 142 countries   Topics covered:

i.  Legal and Regulatory Framework ii.  Large-Value Funds Transfer Systems iii.  Retail Payment Systems iv.  Foreign Exchange Settlement Systems v.  Cross-border Payments and International Remittances vi.  Securities Settlement Systems vii. Payment System Oversight and Cooperation viii. Planned and On-going Reforms to the National Payments System

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The “new” Global Payment Systems Survey 2010   Launched in July 2010

  Sent to 172 central banks and 191 countries

  Topics covered: i.  Legal and Regulatory Framework ii.  Large-Value Funds Transfer Systems iii.  Retail Payment Systems iv.  Foreign Exchange Settlement Systems v.  Cross-border Payments and International Remittances vi.  Securities Settlement Systems vii.  Payment System Oversight and Cooperation viii.  Planned and On-going Reforms to the National Payments System

  Annex 1! New survey on innovations in retail payments issued as an Annexure to GPSS. Builds on CPSS “Survey of Developments in Electronic Money and Internet and Mobile Payments”. Annex 1 is divided into 5 key areas:

i.  Type of Products ii.  Design Features of the Products iii.  Legal and Regulatory Framework iv.  Statistics v.  Planned Reforms/New Products

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The “new” Global Payment Systems Survey 2010: Scope   Legal and Regulatory Framework   Settlement finality, legal recognition of netting arrangements, electronic payments, zero-

hour rule and similar, competition, consumer protection, enforceability of security interests; SSS: dematerialization/immobilization, settlement finality, novation, lending arrangements; legal basis of the oversight function and overseers; AML/CFT; registration/licensing requirement for non-bank service providers

  Large-Value Funds Transfer Systems   Systems, operators, statistics, messaging networks, pricing, liquidity and queuing, resilience

and business continuity, access rules

  Retail Payment Systems   Cheque clearinghouse: features, special procedure for large-value cheques, risk controls;

ACH for direct credits and/or direct debits: features, risk controls; payment card systems: features, ATM and POS, interchange fees, payment switches; non-cash payment instruments; fraud; government payments

  Foreign Exchange Settlement Systems   Main features, OTC markets

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The “new” Global Payment Systems Survey 2010: Scope

  Cross-border Payments and International Remittances   Cross border: integration, use of SWIFT network; remittances: types and relevance of

RSPs, payment mechanisms, transparency, consumer protection, access to infrastructure, regulation of RSPs, competition, oversight

  Securities Settlement Systems   General features; CSDs: main features, settlement, participation and custody arrangements,

resilience and business continuity ; clearing institutions; CCPs: mean features, management of credit exposures, resilience and business continuity; regulatory and oversight

  Payment System Oversight and Cooperation   Objectives, scope, instruments, cooperation with other authorities, cooperation with other

stakeholders

  Planned and On-going Reforms to the National Payments System

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The “new” Global Payment Systems Survey 2010 (Annex 1): Scope

  Type of Products   Innovative products, innovative access channels to bank account for payment purposes

(“innovative” solutions are those that involve a) the development of a new product, and/or b) innovation in processing)

  Design Features of the Products

  Legal and Regulatory Framework

  Statistics

  Planned Reforms/New Products

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The “new” Global Payment Systems Survey 2010: Methodology

  Two questionnaires, totaling 119 questions (Annex 23)

  In approximately 90% of the questions/sub-items, questions are in the form of “YES/NO”, or “mark with an X all that apply”, etc.

  The survey aims at extracting the greatest amount of information minimizing the room for subjective interpretations, either from the respondent or from the analysts processing the responses.

  In most cases questions are very specific   Questions were designed as objectively as possible. However, in some cases the particular

opinion of the respondent Central Bank was asked

  The Survey was sent only to central banks (or similar institutions)

  Main improvements/changes to the last edition (2008)   retail payment systems section   international remittances (cross-border and remittances section)   securities settlement systems section

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Status of responses as of October 19, 2010 – by Region

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Status of responses as of October 19, 2010 – by Region

10

Status of responses as of October 19, 2010 – by Region

11 Honduras sent on 10/18

Status of responses as of October 19, 2010 – by Region

12

Status of responses as of October 19, 2010 – by Region

13

  Additional countries currently in the process of completing the questionnaires:

  Angola   Aruba   Bahrain   Bangladesh   Cayman Islands   China   ECCB   Egypt, Arab Republic   Fiji   Guinea   India   Indonesia

  Kenya   Macao (China)   Nicaragua   Paraguay   Philippines   Slovak Republic   Sri Lanka   Sudan   Tajikistan   Tanzania   Ukraine   Venezuela   Vanuatu

  Including announced contributions, the total number of respondents after only three months from the launch of Global Payment Systems Survey is 138 countries!

*As of October 19, 2010

A snapshot of preliminary outcomes

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As of October 8, 2010

Legal and regulatory framework (I)

  Pieces of legislation with explicit references to payment systems

15

91 46

New New New

55

Legal and regulatory framework (II)

  Central Bank legal powers to oversee payment systems

16

8 60 35 48

27

7

20

44

Large -Value Funds Transfer Systems (I)

  Main systems used for large-value funds transfers

17

79 34 17

73

92

67

Large -Value Funds Transfer Systems (II)

  Sources of liquidity in RTGS systems

18

  As in the Global Payment Systems Survey 2010, flexibility in the use of required reserves is lower in MENA countries and ODCs

  Preliminary findings suggest that slightly less RTGS systems rely on operators providing credit (71% in 2008 vs. 61.3%)

Large -Value Funds Transfer Systems (III)

  Features of the settlement systems (non RTGS) for large-value payments

19

Retail Payment Systems (II)

20

  Cheque clearinghouse main features

Payment System Oversight and Cooperation (I)

  Scope of the payment system oversight function

21

17 55 39 16 57

33

Payment System Oversight and Cooperation (II)

  Oversight instruments rated most relevant

22

20 34 38 42 New

65

75 42 33 25

87 7

23

…Thank you for your contribution

to the Global Payment Systems Survey 2010!!!