Core Principles for Systemically Important Payment Systems
In 2001, the G-10 Committee on Payment and Settlement Systems (CPSS) published the Core Principles for Systemically Important Payment Systems. The principles are intended to encourage safe and efficient design and operation of systemically important payment systems. In addition, the CPSS has outlined four responsibilities of central banks in applying the Core Principles.
Australia’s systemically important payment system is the Reserve Bank Information and Transfer System (RITS). This system is owned and operated by the Reserve Bank and stands at the centre of the Australian payments system. It is a real-time gross settlement (RTGS) system, and settles around 90 per cent of interbank settlements by value. The system is also used for the settlement of low-value payments on a deferred net basis. The reliability of RITS is essential to the smooth functioning of the Australian payments system and the stability of the financial system more generally.
Self-Assessment of RITS
The Reserve Bank periodically conducts self-assessments of RITS against the Core Principles. The most recent self-assessment, completed in 2009, concluded that RITS met all of the Core Principles and that the Reserve Bank met the responsibilities of central banks in applying the Core Principles. Self-assessments conducted in 2005 and 2009 are available below. An earlier self-assessment, conducted in 2000, is summarised in the Annual Report of the Payments System Board for that year.
2009 Self-Assessment of the Reserve Bank Information and Transfer System
2005 Self-Assessment of the Reserve Bank Information and Transfer System [PDF 155K]
IMF FSAP Assessment of RITS
In December 2005, the IMF assessed RITS against the Core Principles as part of its FSAP assessment of Australia. The assessment found RITS to be a sound and efficient system that complies with all the applicable Core Principles. The assessment also found that the Reserve Bank fulfils its responsibilities in applying the Core Principles. The IMF published its detailed assessment of RITS in November 2006. The assessment can be found starting on page 129 of the document Australia: Financial Sector Assessment Program — Detailed Assessment of Observance of Standards and Codes on the IMF website.
