Presentation is loading. Please wait.

Presentation is loading. Please wait.

SADC Payment System Integration Project Presentation to AMEDA 25-27 April 2012.

Similar presentations


Presentation on theme: "SADC Payment System Integration Project Presentation to AMEDA 25-27 April 2012."— Presentation transcript:

1 SADC Payment System Integration Project Presentation to AMEDA 25-27 April 2012

2 SADC Payment System Project - Domestic Project Vision n Each SADC country has : –An efficient and effective payment system Internationally acceptableInternationally acceptable Interlinked within the regionInterlinked within the region –Supporting the SADC aims of : »Free trade

3 Payment, Clearing and Settlement Systems n Different approaches to Modernisation –Pure strategic approach –Model-based approach –Operational approach n Achievements

4 SADC Modernisation so far IMPLEMENTATIONLAUNCHSENSITISATION INFO & STOCKTAKING VISION & STRATEGY CONCEPTUAL DESIGN BUS. PROC SPECS TECHNICAL SPECS DEVELOP/ PROCURE IMPLEMENTATION ANGOLA BOTSWANA DRC LESOTHO MADAGASCAR MALAWI MAURITIUS MOZAMBIQUE NAMIBIA SOUTH AFRICA SWAZILAND TANZANIA ZAMBIA ZIMBABWE SEYCHELLES

5 SADC Payment System Project - Regional Project Vision n Each SADC country has : –An efficient and effective payment system Internationally acceptableInternationally acceptable Interlinked within the regionInterlinked within the region –Supporting the SADC aims of : »Free trade

6 SADC Payment System RISDP – for 2018 (being revised) (Regional Indicative Strategic Development Plan) n A single currency n A SADC Central Bank n This will entail a change in thinking from sovereign to regional

7 SADC Payment System n Building a model – possible role for CMA based on the Rand as a settlement currency n Can be used for various purposes including: –Testing the system concepts of regional clearing and settlement –Creating confidence in a regional settlement environment –Identifying legal issues –Breaking down barriers and misconceptions

8 SADC Payment System n Building a model – possible role for CMA n Possibly 3 phases: –Model 1 Settle local transactions in-countrySettle local transactions in-country Settle cross-border transactions in a central CMA systemSettle cross-border transactions in a central CMA system –Banks will have individual accounts –Model 2 Settle all transactions in a central CMA systemSettle all transactions in a central CMA system –Banks will have individual accounts –Model 3 Settle all transactions in a central CMA systemSettle all transactions in a central CMA system –Banks may settle through their head office to centralise their Treasury functions pool liquidity

9 FNB ABSA ACH NFNB Bank W/ho ek NACH South Africa Namibia CMA Clear CMA Settlement Model 1

10 FNB ABSA Bank W/ho ek South Africa Namibia CMA Clear CMA Settlement Model 2 NFNB

11 FNB ABSA NFNB Bank W/ho ek South Africa Namibia CMA Clear CMA Settlement Model 3

12 SADC Payment System n Building a model – possible role for CMA n Going forward: –Model 1 can be achieved at relatively low cost Minimal expenditure on equipment and systemsMinimal expenditure on equipment and systems Initial CMA Settlement feature hosted by SARB using a ring-fenced infrastructureInitial CMA Settlement feature hosted by SARB using a ring-fenced infrastructure –If approved – work to start early 2012

13 SAMOS Participant Bank to SAMOS Participant Bank Payments SAMOS Participant Bank SAMOS Participant Bank SWIFT FIN ZDS Copy Service SWIFT FIN ZDS Copy Service 13 SAMOS RTL CPL and CBPL Loans Reserve Management Settlement Management Instruction RESS Account. MT103./MT202 MT096 MT097 MT/103MT202 SAMOS Participant Bank SAMOS Participant Bank Dr SAMOS Bank A Cr SAMOS Bank B

14 CMA Domestic Bank to CMA Domestic Bank Payments Domestic Participant Bank Domestic Participant Bank SWIFT FIN Copy Service SWIFT FIN Copy Service 14 Domestic RTGS RTL CPL and CBPL Loans Reserve Management Settlement Management Instruction RESS Account. MT103./MT202 MT096 MT097 MT/103MT202 Domestic Participant Bank Domestic Participant Bank Dr Domestic Bank A Cr Domestic Bank B

15 QB March 2011 SAMOS Participant Bank CMA Participant Bank CMA Participant Bank SWIFT FIN ZDS Copy Service SWIFT FIN ZDS Copy Service 15 MT202 MT096 MT097 MT202 1 2 3 4 5 6 3.1 SAMOS Bank 3.2 SIRESS Account 5.1 SAMOS Account 5.2 CMA Bank MT910 SIRESSSAMOS Proposal to Fund SIRESS Accounts

16 SAMOS Participant Bank to CMA Participant Bank Cross Border Payments Bypass SAMOS system (Normal settlement between CMA Banks) SAMOS Participant Banks SAMOS Participant Banks CMA Participant Banks CMA Participant Banks 16 SAMOS RTL CPL and CBPL Loans Reserve Management Settlement Management Instruction RESS Account. SIRESS CPL and CBPL Settlement Management Instruction Admin Instructions SWIFT FIN RESS Copy Service SWIFT FIN RESS Copy Service MT103./MT202 2 3 4 6 MT096 MT097 5 1 Dr SAMOS Bank Cr CMA Bank

17 Receive payments from counterparts Receive payments from counterparts FX deal FX deal Interbank loans Interbank loans Utilising funds in the Settlement account

18 Proposal for Phase 1 of the integrated system n Keep the system as simple as possible –No collateralised loans provided for in the system n Key considerations –Promote interbank loans –Central banks to assist clearing banks in their jurisdictions to access liquidity as far as possible

19 SADC BA Stakeholders

20 SADCBA Organizational structure

21 End – Thank You


Download ppt "SADC Payment System Integration Project Presentation to AMEDA 25-27 April 2012."

Similar presentations


Ads by Google