Oversight function for payment systems from CBS

The Central Bank of Swaziland (CBS) launched the formal establishment of its oversight function for payment systems, developed in response to the increasing role of the private sector and central banks in providing payment and settlement systems.

Payment and settlement systems are beneficial as they enable transfer of money and financial instruments, and help to maintain financial stability by preventing or containing financial risk.

According to a position paper issued by the Committee on Payment and Settlement Systems (2005), Oversight of Payment and Settlement Systems is the function of a central bank. Moreover, the CBS (amendment) Act of 2004 specifies conditions of payment systems as a statutory function. Those conditions are "to promote, regulate and supervise the efficient and secure operation of payment systems". The Oversight Office forms part of the National Payment Systems (NPS) Division, which is managed by Mandla Dlamini under the Operations Department lead by Hogan Thring.

Phil Mnisi, Assistant Governor commented on the issue by saying, "Participant banks and the Swaziland Automated Electronic Clearing House (SAECH) shall be required to cooperate in providing information for on-site and off-site inspections and to implement identified changes to enhance safety and efficient payment and settlement systems." He also noted that the policy framework also illustrates the general principles and procedures that would help CBS to carry-out the oversight function. 

General oversight principles are: transparency, international standards, effective powers and capacity, consistency.

Source: Swazi Observer