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Cips cny swift share11/25/2022 ![]() In an RTGS system, large-value interbank payments are settled on a continuous, deal-by-deal basis through the banks' settlement accounts with the settlement institution of the system. ![]() Position netting exposed banks to systemic risk because the failure of one bank to pay the amount due at the end of the day might expose other banks to unexpected payment obligations, triggering a chain of defaults. A bank paid (or received) only the net difference of the payments payable to (or receivable from) all the other banks participating in the system at the end of each business day. Such position netting was not obligatory and not supported by a formal legal framework as in the case of obligation netting. Prior to the introduction of the RTGS system in 1996, banks settled payments among themselves by way of position netting. While banks in Hong Kong can apply to the Clearing Bank for direct access to the system, participation of other financial institutions has to be approved by the HKMA and the Clearing Bank on a case-by-case basis. Non-local banks and financial institutions can also choose to join the system indirectly by settling their payments through direct members in Hong Kong. ![]() The renminbi RTGS system not only processes renminbi interbank payments on an RTGS basis, but also handles renminbi bulk clearing and settlement of payment items similar to those handled by the Hong Kong dollar RTGS system.īanks in Hong Kong and elsewhere can join the system directly by opening renminbi settlement accounts with the Clearing Bank. The renminbi RTGS system in Hong Kong can be regarded as a technical extension of CNAPS in Mainland China, but governed by Hong Kong laws. ![]() The Clearing Bank maintains a settlement account with the People's Bank of China and is a member of China's National Advanced Payment System (CNAPS). The renminbi RTGS system (also known as renminbi CHATS) was upgraded from the Renminbi Settlement System in June 2007 with the Bank of China (Hong Kong) Limited as its Clearing Bank. The HKD RTGS system is subject to the DF, and the disclosure report of HKD RTGS system is completed according to the disclosure template outlined in the DF. The disclosure framework (DF) is intended to promote consistent and comprehensive public disclosure by FMIs in line with the requirements of the PFMIs. The Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements and the International Organization of Securities Commissions (IOSCO) have jointly issued a disclosure framework and assessment methodology for their principles for financial market infrastructures (PFMIs), which is the latest international standards for financial market infrastructures (FMIs). As an on-going effort of the HKMA to eliminate settlement risks for foreign exchange transactions, with the Financial Secretary’s approval, the HKMA allowed the CLS Bank International to have limited access to the system in late 2004 to facilitate the inclusion of the Hong Kong dollar in the foreign exchange transactions to be settled through the Continuous Linked Settlement (CLS) system on a payment-versus-payment basis.ĭisclosure Framework for Hong Kong Dollar RTGS System Restricted licence banks in Hong Kong may also apply to the HKMA for access to the system, and applications will be assessed against the access criteria set out in the HKMA circulars “Access to the Real Time Gross Settlement System” issued on 29 December 1999 and. With the Exchange Fund Ordinance providing the legal basis for access to the system, licensed banks in Hong Kong are required to join the system and maintain Hong Kong dollar settlement accounts with the HKMA. The Hong Kong dollar RTGS system has a single-tier membership structure. Besides providing interbank payment services, payments arising from the HKMA's monetary operations are also conducted through the Hong Kong dollar RTGS system. In addition to settling large-value payments between banks, the system also handles bulk clearing and settlement of cheques, stock market-related payments and other small-value bulk electronic payments, such as EPS, auto-credit and auto-debit transactions, and automatic teller machine transfers. Interbank payments are settled continuously on a deal-by-deal basis across the book of the HKMA without netting. Introduced in 1996, the Hong Kong dollar Real Time Gross Settlement (RTGS) system (also known as Hong Kong dollar Clearing House Automated Transfer System (CHATS)) enables safe and efficient settlement of interbank payments denominated in the Hong Kong dollar. ![]()
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