Recomendaciones

Central banks play a critical role in maintaining an economy’s payment infrastructure by operating systems used to settle generally large-value interbank funds and securities transfers. Central bank intra-day liquidity facilities are designed to help ensure the smooth functioning of payment, clearing, and settlement activities that occur in the financial system by temporarily extending credit to institutions that have insufficient funds to meet payment obligations during the day.

Table 10 presents information about: i) the settlement system over which payments occur, ii) the type of intra-day liquidity facility, iii) the charge for central bank extension of intra-day credit, iv) whether the central bank has a foreign currency settlement system, v) whether the country’s banks participate in the CLS (Continuous Linked Settlement) bank, and vi) any other settlement systems operated by the central bank.

Table 10: Settlement systems and intra-day liquidity facilities (as of September 2019)

Settlement system Intra-day liquidity

facility Charge Foreign currency settlement system CLS participation by banks Other settlement system(s) Australia RTGS, since 1998 Intra-day repo No charge for repo

operations No Yes Yes

1

Brazil RTGS, since 2002 Federal Bonds Repo No charge N/A N/A N/A

Canada LVTS, since 1999 Intra-day pledged

collateral No charge No Yes CDSX (securities settlement system)

China RTGS, since 2005 Intra-day collateral loan

and overdraft Charge at interest rate of SLF(Standing Lending Facility)

No Yes

Eurosystem RTGS, since 1999 Intra-day repo and overdraft, depending on country

No charge if against

collateral No Yes Ancillary systems

2

Hong Kong RTGS, since 1996 Automatic intraday repo3 _{No charge, with haircut}

applied RMB, USD and EUR RTGS Yes Yes

4

1 _{Cheques, Government direct entry and card based payments systems settle on a deferred net basis. Some changes were implemented to non-Government same-day DE on 25 November 2013, requiring the provision of}

Open RBA Repos. The settlement system for debt securities trades settles on an RTGS basis. The settlement system for equities settles on a deferred multilateral net basis (though an unused RTGS option exists). 2 _Ancillary

systems are those systems in which payments or securities are exchanged and/or cleared while the ensuing monetary obligations are settled in TARGET. 3 _{Intraday repo transaction will be automatically entered between the}

HKMA and a bank when a bank's clearing account has insufficient fund to effect its payment obligations. 4 _{CMU system – a clearing and settlement system for debt securities.}

Table 10 (cont): Settlement systems and intra-day liquidity facilities (as of September 2019)

Settlement system Intra-day liquidity facility Charge Foreign currency

settlement system CLS participation by banks Other settlement system(s)

India RTGS Intra-day liquidity facility No charge Yes; netting through a

central counterparty with Settlement on delivery versus payment (DvP basis)

No. CLS services to Indian banks provided by Clearing Corporation of India Ltd (CCIL) as third party1

Government Securities settlement through central counterparty (CCIL)

Japan RTGS, since 2001 Collateralised intra-day

overdraft No charge No Yes Yes

2

Korea RTGS, since 1994 Hybrid, since 2009

Collateralised intra-day

overdraft No charge unless the intra-day credit amount is more than 25% of financial institution’s equity capital

No Yes

Intra-day repo No charge

Mexico RTGS Intra-day repo and intra-day

overdraft through secured loans No charge Yes Yes, some commercial banks N/A

Singapore RTGS, since 1998 Intra-day repo facility for all eligible MEPS+ participants that have signed a GMRA with MAS

No charge unless otherwise

announced No Yes Securities settlement system

Sweden RTGS, current platform launched 2009

Intra-day collateralised loan Lending against collateral

without interest rate No Yes Securities settlement system

Switzerland RTGS, since 1987 Intra-day repo No charge (110% collateral) EUR RTGS Yes Securities settlement

system

United Kingdom RTGS, since 1996 Intra-day collateralised loan No charge No Yes Yes3

United States RTGS, since 1970 Daylight overdraft caps. Fee if

uncollateralised. No charge if against collateral; Fee if uncollateralised No Yes Yes

4

No charge

1 _{CCIL started the settlement of cross currency deals of banks in India through the CLS Bank in April 2005. Through this arrangement, CCIL aggregates trades reported by all Member banks and enables banks to collectively}

enjoy the benefits of cross currency settlement through CLS Bank. This is a unique experiment whereby cross border settlement of an entire country is being achieved through a third party arrangement. Settlement through the CLS mechanism is on a payment versus payment basis. 2 _{The Bank of Japan operates the JGB Book-Entry Transfer System as a book-entry transfer institution for the Japanese government bond.} 3 _{Retail clearings not}

relevant to the money market or monetary policy implementation – those for standing orders etc, for cheques and giro credits, for credit and debit cards, and for automated teller machines. Also payment systems embedded within CREST, the UK securities settlement system – used for market repos and Bank of England repos of securities held in CREST. 4 _{Other settlement systems include those not relevant to monetary policy implementation,}

including securities settlement systems, large value payment systems and retail payment systems. Source: Participating central banks.