Source: The Brunei Times
Goh De No
BANDAR SERI BEGAWAN
Tuesday, May 15, 2012
BRUNEI is playing host to the seventh SEACEN-CEMCoA/BOJ ‘Intermediate Course on Payment and Settlement Systems for Emerging Economies’, which was officially launched yesterday by event organiser Autoriti Monetari Brunei Darussalam (AMBD).
Co-organised by the South East Asian Central Banks (SEACEN) Research and Training Centre, Center for Monetary Cooperation in Asia (CEMCoA) and Bank of Japan (BOJ), the seventh instalment of the course is being hosted by the AMBD, with the aim of emphasising the importance of the Payment and Settlement System (PSS).
Dr A G Karunasena, executive director of the SEACEN Centre, said in his opening speech that the PSS critically supports functioning of economic and financial activities.
Pushed by the advancement of information technology and a dramatic increase in funds transfer worldwide, the role of the PSS has never been more prominent, he said.
A PSS is described as a system which consists of a particular group of institutions and a set of instruments and procedures designed to ensure the circulation of money and speed up inter-bank and other settlements resulting from economic transactions either within a country or between countries.
“PSS is no longer back room but it is on top of the policy agenda, and in this light, the required knowledge to operate PSS has significantly expanded to compliment the central bank role as an overseer as well as catalyst for innovation,” said Dr Karunasena at the Rizqun International Hotel in Gadong yesterday.
Deputy managing director of the AMBD, Chong Fu Li, in his opening speech said that the course, which will be carried out over the next five days, will discuss and debate a wide variety of issues on the PSS.
“We will all have the benefit of valuable exchanges of information from participating countries on their own experiences and challenges in managing their payment systems. We hope this forum will give us the opportunity to take back home, productive recommendations to enhance our own,” said Chong.
He also hoped that the forum will give participants the opportunity to take back home, productive recommendations to enhance each member countries’ PSS architecture and our management skills.
Chong added: “In doing so we must always remember that we ought to cater to our own markets and needs which naturally differ from country to country.”
The acting MD went on to say that it is the responsibility of central banks and monetary authorities, to ensure the smooth functioning of its PSS.
“Consequently, the safeguards necessary to prevent systemic risk assume critical importance. The sophistication of our PSS will depend on how deep and complex our financial markets are. Therefore, we look forward to very vibrant and healthy discussions and debates among participants as the programme progresses,” said Chong.
Chong, citing The Bank for International Settlements (BIS), said: “The three critical components of any payments system are payment instruments, banking procedures and typically, inter-bank funds transfer systems, that ensure the circulation of money.”
He added that central banks and monetary authorities, which have oversight responsibility for their financial systems, can play several roles in the payment and settlement system of their countries as operators, overseers, users, catalysts or facilitators.
“However, their key responsibility is to ensure a safe and efficient payment and settlements system, within a mandatory, governance and regulatory framework,” he said.
The AMBD on August 17, 2011, announced that it had commissioned consultants, Dun & Bradstreet International Ltd (D&B), to begin consultancy work and to assist the board in providing the appropriate infrastructure to meet requirements and standards for the establishment and operation of a credit bureau, which is targeted to be in operation by the middle of 2012.
SEACEN was first established as a legal entity in 1982 with eight member central banks/monetary authorities which has since grown to 18 members in 2012.
In this latest course, 15 different central banks have sent a total of 34 representatives for this course designed towards middle-level or technical staff.
Since its inception, the SEACEN Centre has established its unique regional position in serving its membership of central banks in the Asia-Pacific region through its learning programmes, research work, and networking and collaboration platforms for capability building in central banking knowledge.
