The European Central Bank has identified four key payment systems under new regulations that took effect this month, making the payment systems subject to tighter regulatory control, Finextra reported.
The payment systems are Target2, operated by the Eurosystem, which handles major inter-bank payments; Euro1 and Step2-T, both run by Euro Banking Association (EBA) Clearing; and the six-bank French joint initiative Core(Fr). All four have been deemed to be “systemically important payment systems” (SIPS).
The SIPS regulation, which covers large-value and retail payment systems in the Eurozone operated by both central banks and private entities, is more rigorous than previous oversight standards, and includes sanctions and corrective measures for system operators in case of non-compliance.
Its aim is to promote the “smooth operation of safe and efficient payment systems” through strong management of legal, credit, liquidity, operational, general business, custody, and investment risks,” according to the ECB.
The list will be reviewed annually by the Eurosystem based on updated data.