Licensing and supervision of interbank systems
The Payment Systems Act, which entered into force in April 2000, assigns Norges Bank the responsibility for licensing and supervising interbank systems in Norway. The purpose of the Act is to ensure that interbank systems are organised to promote financial stability. The Act is based on international recommendations for the organisation of payment systems.
Which systems are subject to licensing and supervision?
Licensing is required for interbank systems that are important to financial stability. Norges Bank assesses whether a system is important to financial stability on the basis of the following:
- Turnover in the system
- Risk factors in the system
- Number of participants in the system and links to other systems
- Exposures and participants' financial position
- The importance of the system in society
Two market participants are currently licensed to operate interbank systems: DnB Bank ASA and the NICS Operations Office. Norges Bank’s Settlement System (NBO) is not subject to the Payment Systems Act. The operation and development of NBO are nevertheless based on international recommendations for the organisation of payment systems.
What are the requirements for licensed systems?
General requirements regarding interbank systems are laid down in the Payment Systems Act, but Norges Bank may set more detailed requirements for the systems. These requirements will be based on an assessment of the risk factors in the individual system. Systems that have been licensed must report to Norges Bank on turnover, exposures, deviations, contingency exercises etc.
For further information about licensing and supervision of interbank systems, please refer to the following:
See also the report Principles for financial market infrastructures - consultative report (CPSS Publications No 94)