The Central Bank’s Role in the Payment System: Legal and Policy Aspects
Current Developments in Monetary and Financial Law (2008 International Monetary Fund), pg. 445-470, 2008
33 Pages Posted: 5 Feb 2010
Date Written: 2008
Abstract
The paper starts with a brief overview of the payment system and the roles central banks have traditionally played as payment intermediaries. In particular, it discusses interbank settlement and the role of bank money as a settlement asset. The paper shows that the concept of settlement finality, which has both legal and risk management dimensions, is a key attribute of any form of payment and is not a unique attribute of payments made through a central bank.
Keywords: central bank, payment system, clearing, interbank settlement, interbank payment
JEL Classification: E5, E58, G18, N20
Suggested Citation: Suggested Citation
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