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General Outlook on Payment Systems

 

General Outlook on Payment Systems

Interest in developing financial and banking sectors infrastructure - especially in payment, securities, clearance, and settlement systems - has increased in recent years, owing to the advances seen in upgrading and developing such systems which represented in controlling systemic risks and consolidating pillars of financial stability, on one hand, and facilitating the access to finance and financial services of the economy, on the other.

Accordingly, reducing risks that may accompany such operations in addition to procedures related to them are key priorities for oversight and supervisory authorities, particularly central banks, for the close connection between payment and settlement systems and the two main functions of the monetary authority; namely the maintenance of fiscal and monetary stability.

 

The Central Bank of Jordan, as other central banks, assumes several roles in payment systems:

First

it is a user for these systems. This role allow CBJ to act as a monetary authority to settle open market operations and to complete payment operations related to its customers.

Second

it is an operator and director for some of these systems. CBJ provides clearing and settlement payment services to members participating in these systems. These services include providing appropriate infrastructure for the systems in addition to optimizing development and change.

Third

CBJ acts as a supervisor over these systems. The importance of this role has increased recently. It contributes in ensuring the efficiency and safety of these systems - reflected in finding a sound infrastructure for the financial system in the kingdom.


Interest in developing financial and banking sectors infrastructure - especially in payment, securities, clearance, and settlement systems - has increased in recent years, owing to the advances seen in upgrading and developing such systems which represented in controlling systemic risks and consolidating pillars of financial stability, on one hand, and facilitating the access to finance and financial services of the economy, on the other.

Accordingly, reducing risks that may accompany such operations in addition to procedures related to them are key priorities for assessment and observation authorities, particularly central banks, for the close connection between payment and settlement systems and the two main functions of the monetary authority; namely the maintenance of fiscal and monetary stability.

 

The Central Bank of Jordan, as other central banks, assumes several roles in payment systems:

First

 it is a user for these systems. This role allow CBJ to act as a monetary authority to settle open market operations and to complete payment operations related to its customers.

Second

 it is an operator and administrator for some of these systems. CBJ provides clearing and settlement payment services to members participating in these systems. These services include providing appropriate infrastructure for the systems in addition to optimizing development and change.

Third

 CBJ acts as a supervisor over these systems. The importance of this role has increased recently. It contributes in ensuring the efficiency and safety of these systems - reflected in finding a sound infrastructure for the financial system in the kingdom.

 

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