Financial Stability

A BIS embarrassed

Defeat for the BIS by minor shareholders was embarrassing and it has consequences for central banks with private shareholders, reports William Hall.

Shortage of notes threatens Zimbabwe's banks

Zimbabwe has been hit by a shortage of banknotes recently after currency restrictions made it difficult for the central bank to import special note paper, banking officials said. However, the central bank this week attributed the note shortages to the…

Hong Kong launches euro clearing system

Hong Kong launched its euro clearing system on Monday 28 April with the aim of eliminating Herstatt risk in foreign exchange settlements, according to Reuters.

China quarantines banknotes in SARS scare

China's banks are taking steps to halt the spread of the SARS virus and the central bank has urged people to use cards instead of cash. Other steps include sterilising banknotes with disinfectant, according to Dow Jones.

HKMA's Euro Clearing System goes live

The Hong Kong Monetary Authority's new Euro Clearing System will process its first transaction on 28 April. The key functions of the Euro Clearing System will include an interbank Real Time Gross Settlement (RTGS) system.

Ferguson on the Check Truncation Act

In testimony on the Check Truncation Act Roger Ferguson of the Federal Reserve said the Board believes that, over the long run, the concepts embodied in the Check Clearing for the 21st Century Act will spur the use of new technologies to improve the…

Value of Iraqi currency takes nose dive

An article from the Wall Street Journal asks What will happen to the Iraqi currency? The article suggests a lot of work has to be done, particularly as the 250 dinar note is now worth more than the 10,000 note due to the possible cancellation of notes…

ECB TARGET Annual Report 2002

The European Central Bank (ECB) on 14 April publishing the third edition of the TARGET Annual Report. It gives an overview of TARGET operations in the year 2002.

Russian central bank invites banks to talk back

the Moscow Times reports that Russia's central bank has started a discussion forum on its web site which aims to establish dialogue with the banking community and improve the quality of central bank decisions.

Argentine gov't to withdraw quasi-currencies

An agreement reached on Thursday 10 April means that nine of the ten issues of quasi currencies can be removed from the system in Argentina, Associated Press said. The move which came during the currency crisis in the South American nation complicated…

RBI to recall 15% of notes

According to central bank sources quoted by Reuters, the Reserve Bank of India plans to take up to 15% of banknotes out of circulation as part of its clean note policy

US plan to e-process checks has critics

A Federal Reserve proposal to allow banks to process checks electronically and substitute a new type of check for traditional paper checks has been endorsed by the banking industry, says Associated Press. But consumer groups say it would increase the…

Report says Irish gov't may switch to e-payments

A report commissioned by the Irish government recommends a move to e-payments which could save €200 million a year. However, according to the Sunday Times, the report highlighted a number of problems which must be overcome before the change can take…

Banks seek redress after clearing system seizes up

A damages row has erupted after a computer failure at the worlds largest forex clearing house left some banks facing heavy losses last month. CLS Bank, which operates the real-time payment system linking the central banks of the seven largest currencies,…

Iraq's central bank unveils new banknote

The Iraqi central bank has issued a new banknote for 10000 dinar. The note contains various security features as well as the same portrait of President Saddam Hussein used on all other banknotes in Iraq, according to the LBMRC.

Minehan on the U.S. Retail Payments System

In a speech on 'Technology and the U.S. Retail Payments System: Challenges and Opportunities' Cathy Minehan of the Federal Reserve Bank of Boston said after September 11, no list of challenges can be complete without mention of the need to continually…

RBA Payments System Board Annual Report 2002

The Reserve Bank of Australia issued its Payments System Board Annual Report on 28 March. The Report said the Board has embarked on a major reform of card networks that is intended to allow market mechanisms to operate more effectively in the Australian…

Policy issues for central banks in retail payments

The Committee on Payment and Settlement Systems (CPSS) published the report Policy issues for central banks in retail payments on 10 March. The report was prepared for the CPSS by its Working Group on Retail Payment Systems, which comprises payment…

Bank of Canada Working Paper, February 2003

RESEARCH - In the Working Paper "Managing Operational Risk in Payment, Clearing, and Settlement Systems" Kim McPhail describes the key features of systemically important PCSS in Canada and the oversight role of the Bank of Canada with respect to those…

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