Payments and infrastructure
Payment systems and securities settlement systems (settlement systems) are an important part of the economic and financial infrastructure, which allow for the transfer of funds and financial instruments between participants in payment and settlement systems. By ensuring the safe, effective and timely settlement of financial transactions, payment and settlement systems make a key contribution to the smooth functioning of financial markets, and thereby to general economic stability and efficiency.
In the broader sense, payment and settlement systems consist of a set of instruments, procedures, rules and technological support for transmitting information and settling funds or financial instruments between their participants. In the narrower sense, payment and settlement systems entail a formal arrangement based on a private contract or legislation, with multiple membership, standardised arrangements and common rules, for the transmission, clearing, netting and/or settlement of money obligations and financial instruments between their participants.
In the area of payment and settlement systems, as the central bank, the Bank of Slovenia ensures their stable functioning, acting in several roles in so doing:
- Oversees the security and efficiency of payment and settlement systems;
- Operates a payment system that provides for settlement in central bank money;
- Allows Slovenian participants to participate in pan-European payment systems;
- Executes settlement of participants’ money claims and liabilities arising from participation in payment systems;
- Manages the settlement accounts of participants in payment and settlement systems;
- Ensures the liquidity to participants of payment and settlement systems;
- Acts as a catalyst and promoter of the activities of market participants, with the aim of improving competition and promoting development.
Irrespective of the role in which the Bank of Slovenia acts, its objective is always to ensure transparent functioning and the clarity of its basic guidelines for all stakeholders in payment and settlement systems.