Operated by Payments NZ, the system clears approximately $551 billion in high-value payments each month, including major transactions such as house purchases. It is the first clearing payment system to be designated as a financial market infrastructure in New Zealand.
“The High Value Clearing System plays a central role in the end-to-end processing of high-value payments,” says Scott McKinnon, Director of Specialist Supervision at the Reserve Bank.
“Designation will help ensure a critical part of New Zealand’s payments infrastructure is resilient, and appropriately governed and managed. This means large payments, such as residential property purchases, can be made safely and reliably, supporting a sound and efficient financial system,” he adds.
Clearing is an essential step that must occur before settlement. It confirms the payment is valid and that funds are available to move between accounts.
The Reserve Bank already supervises the system that settles payments and this designation extends the Reserve Bank’s oversight to the clearing system.
More information
See the Proposal, Submissions and our responses here:
Proposal to recommend that HVCS is designated – Citizen Space
