- Jul. 3, 2020
- Jun. 30, 2020
- Jun. 30, 2020
Some editorial revisions have been made to the English translation since it was initially released on August 22, 2003.
The original Japanese text, however, rains entirely unchanged.
August 22, 2003
Bank of Japan
Click on set0308a.pdf (124KB) to download the full text.
In January 2001, the Bank for International Settlents (BIS) published the report Core Principles for Systically Important Payment Systs, developed by the Committee on Payment and Settlent Systs (CPSS) of the central banks of the Group of Ten countries. 1 The report sets out ten "Core Principles for systically important payment systs" (Core Principles) and four "Responsibilities of the central bank in applying the Core Principles" (Responsibilities).
The Core Principles were developed to serve as guidelines to promote safety and efficiency in the design and operation of systically important payment systs. 2 The report states that one of the Responsibilities of central banks is to oversee payment systs to promote their safety and efficiency, and in particular to reduce systic risk.This paper provides a self-assessment of compliance with the Core Principles by the funds transfer syst owned and operated by the Bank of Japan (the Bank), and describes how the Bank fulfills the Responsibilities. 3
Safe and efficient payment systs are critical for maintaining the stability of the overall financial syst.In particular, systically important payment systs are essential for the effective functioning of the financial syst and, if such a syst is insufficiently protected against risk, a disruption within it could be transmitted to other participants in the syst and result in wider systic disruptions in the financial syst as a whole.
The Bank operates an interbank funds transfer syst, the BOJ-NET Funds Transfer Syst, 4 and also oversees payment systs it does not operate, 5 as an integral part of its activities for ensuring the safety and efficiency of Japan's overall payment and settlent syst. 6 The Bank uses the Core Principles and the Responsibilities as the standards in carrying out these activities.
The BOJ-NET Funds Transfer Syst is a systically important payment syst that is used for transferring funds through current accounts held with the Bank.It settles large-value interbank payments including money market transactions, the cash legs of trades of securities such as JGBs, and net obligations of participants in private-sector clearing systs.The aggregate volume and value of payments it processes is very large--in 2002, it settled a daily average of more than 19,000 payments, with a daily average value of more than 73 trillion yen.
In order to prevent systic disturbance, the operator of a systically important payment syst is responsible for continuously reviewing the syst's compliance with the Core Principles, disclosing the resulting assessments and, where necessary, setting out action plans for achieving full compliance. 7 The Bank has conducted this self-assessment as the operator of the BOJ-NET Funds Transfer Syst.The Bank also believes that publicly reporting how the Bank fulfills the Responsibilities will enhance the transparency of its roles and policies in the field of payment and settlent.Based on the results of its self-assessment, which are described below, the Bank has concluded that the BOJ-NET Funds Transfer Syst complies with the ten Core Principles and the Bank fulfills the four Responsibilities.The Bank will keep a vigilant eye on the developments and changes in the environment surrounding the Bank's operation and oversight of payment and settlent systs, and will update and review its self-assessment from time to time to ensure that its syst continues to comply with the Core Principles and that it fulfills the Responsibilities.