IDEAS home Printed from
   My bibliography  Save this article

The Reserve Bank’s payment system oversight role applied


  • Stuart Irvine
  • Phoebe Chan

    (Reserve Bank of New Zealand)


The Reserve Bank oversees the payment system for the purpose of promoting the maintenance of a sound and efficient financial system. Consistent with the Reserve Bank’s relatively light-handed payment system oversight powers, the Reserve Bank’s approach is to be clear about its objectives and to encourage industry to develop solutions towards these objectives. However, as other central banks have found, industry-led solutions cannot always be delivered, or delivered in a timely manner. Consequently, the Reserve Bank is stepping up engagement with industry to expedite projects that help meet our policy objectives. A current payment system oversight issue for the Reserve Bank is settlement risk in the retail payment system. Empirical analysis shows that routing high-value transactions through the retail system significantly increases end-of-day inter-bank exposures. This article assesses this risk and possible ways to address settlement risk in the retail payment system.

Suggested Citation

  • Stuart Irvine & Phoebe Chan, 2008. "The Reserve Bank’s payment system oversight role applied," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 71, December.
  • Handle: RePEc:nzb:nzbbul:december2008:4

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Ian Nield, 2008. "Evolution of the Reserve Bank’s liquidity facilities," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 71, December.
    2. Allison Stinson & Michael Wolyncewicz, 2003. "Recent developments in the payment system," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 66, March.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nzb:nzbbul:december2008:4. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reserve Bank of New Zealand Knowledge Centre). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.