Payment systems need to have robust contingency arrangements which are tested through challenging exercises, the Bank of England said Wednesday.
In its Payment Systems Oversight Report, the BoE said good progress has been made in reducing risks associated with payment system. But there is more work to do, in part reflecting the inherent difficulties in effecting some of the required improvements.
A key objective should be to ensure continuity of service even in the most extreme scenarios, including multiple member or counter party default, it said.
Looking ahead, the Bank expects to conduct oversight in 2012 within a similar framework to 2011. However, both domestic and international developments are set to impact the future conduct of payment systems oversight.
by RTT Staff Writer
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