Oversight of payment systems

Norges Bank monitors payment systems to promote robustness and efficiency and ensure stability in the financial system.

The legal basis for oversight is laid down in Section 1 of the Norges Bank Act, which states that the Bank shall “promote an efficient payment system domestically as well as vis-à-vis other countries”. In addition, the Payment Systems Act confers upon Norges Bank a particular responsibility for licensing and supervising systems for clearing, settlement and transfer of funds between credit institutions (interbank systems).

Oversight and supervision of interbank systems is based on international recommendations. Especially important here are the principles for financial infrastructures developed by the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions IOSCO).

Norges Bank’s oversight of licensed interbank payment systems is conducted by means of reporting requirements and supervisory meetings. There are two licensed interbank systems: the Norwegian Interbank Clearing System (NICS) and the privately owned settlement bank DNB. The privately owned settlement bank Sparebank1 Midt-Norge is exempt from the licensing requirement.

The results of the Bank's oversight work are published in the Financial Infrastructure Report.

Monitoring and supervision work is described in further detail in the article "Payment systems – a potential source of risk. The need for oversight and supervision"  (Economic Bulletin 3/2007)

Published 24 September 2010 08:26
Edited 31 August 2012 14:50