At its meeting today, the Payments System Board reviewed the strategic priorities for
the Bank’s payments policy work. These include: promoting reliable, secure,
efficient and low-cost electronic payment services; keeping abreast of new
technologies and platforms in payments; putting in place a resolution regime for
financial market infrastructures (FMIs); and ensuring that the framework for
oversight of foreign-headquartered FMIs remains appropriate.
The Board also discussed a number of other issues, including:
- The Council of Financial Regulators’ ongoing review of the regulatory
framework for stored-value facilities. The review is aiming to simplify and
clarify the regulatory regime for such facilities, ensuring that regulation
appropriately protects consumers while minimising barriers to innovation and
competition. Council agencies hosted an industry roundtable on the review in
early November. - Innovation in the payments system, including developments in ‘buy now, pay
later’ payment services. The Board discussed the growth in this segment of the
payments market and the implications of these services for consumers and
merchants. - The New Payments Platform (NPP). While the roll-out of the NPP has been somewhat
slower than initially expected, transaction volumes have been growing steadily.
Members discussed the fact that a number of the major banks have been slow to
make the new system available across a range of channels and to their entire
customer base. Members stressed the importance of the major banks continuing to
work to enable their customers to make payments that take full advantage of this
important new infrastructure. The Board will discuss the results of the Bank’s
current consultation on NPP functionality and access at its February meeting. - Some possible options to clarify the operation of the Bank’s standards
regulating card interchange fees and net compensation to issuers. The Bank will
be preparing draft variations to the standards for consultation with
stakeholders. - The Bank’s annual assessment of LCH Ltd’s SwapClear Service, a UK-based
clearing and settlement facility licensed to operate in Australia. This
assessment will be published on the Bank’s website once the Bank has
fulfilled its obligation to make its findings available to overseas counterparts
with a supervisory interest in LCH Ltd, and the assessment has been provided
formally to the Treasurer and the Australian Securities and Investments
Commission.
/Public Release. View in full here.
