AGENDA ENHANCING THE SAFETY AND EFFICIENCY OF THE NATIONAL PAYMENTS SYSTEM: THE ROLE OF THE OVERSEER

Transcription

1 AGENDA ENHANCING THE SAFETY AND EFFICIENCY OF THE NATIONAL PAYMENTS SYSTEM: THE ROLE OF THE OVERSEER DECEMBER 11-14, 2018 ISTANBUL, TURKEY Program Funded By:

2 PROGRAM LEADER BIOGRAPHIES Demet Çanakçi joined Toronto Centre in 2014 as a Program Director and has solid professional experience in both supervision and central banking for more than 25 years. Before joining Toronto Centre, she served as deputy head in the Financial Sector Assessment division of the Central Bank of the Republic of Turkey (CBRT). She was responsible for both financial stability and international regulations. She has covered financial stability, macroprudential surveillance, macro stress-testing, Basel II and III, Basel core principles, contingency planning, banking sector restructuring, and crisis management topics in a range of publications. Before returning to the CBRT, she was a deputy head in the Banking Regulation and Supervision Agency of Turkey, and an economist at the IMF. She holds a Master of Economics degree from North Carolina State University, was a research scholar at the Kiel Institute for World Economics, and a visiting scholar at George Washington University. Massimo Cirasino is an Italian national and an economist, who has worked at the World Bank Group from 1998 to He served as a Global Lead for Payment and Market infrastructures in the Finance and Markets Global Practice. Mr.Cirasino participated in many of the Group's significant country and regional interventions and has been involved in payment system reform in over 60 countries. Prior to joining the World Bank Group, Mr. Cirasino worked at Bance d'italia in the Payment System Department from 1993 to 1996 and later on in the Representative Office in New York. Mr. Cirasino has degrees in Economics, Business and Political Sciences respectively from the Luiss University (Rome) and the La Spaienza University (Rome). Mr. Cirasino's Master's Degree in Banking was obtained from the La Spaienza University and his Master's in Philosophy degree in Economics from New York University (NYU). Mario Guadamillas is currently Practice Manager, Europe and Central Asia in the Finance, Competitiveness & Innovation Global Practice.Prior to this helped coordinate the joint IMF- WB Financial Sector Assessment Program (FSAP), the WB participation in the Financial Stability Board (FSB) and provided assistance to countries in the banking regulation and supervisory area. Previously he was a Senior Financial Economist for Latin America and the Caribbean, leading Bank operational work. Mario has numerous publications on financial sector issues, notably on financial infrastructure. Before joining the World Bank, Mario was an Economist in the Ministry of Finance of Spain at the Research Department. He also worked for the Central Bank of Spain as an economic and financial analyst. He has lectured at the Universidad Autónoma, Universidad San Pablo CEU, Universidad Alfonso X, Universidad Europea de Estudios Superiores and Universidad Nacional de Educación a Distancia, all in Madrid, in the areas of macroeconomy, economic policy, international economy and financial system. Mr. Guadamillas earned his M.A. and Ph.D. degrees in Business and Economics respectively at the Universidad Complutense and Universidad Nacional de Educación a Distancia in Madrid. ~ 1 ~

3 Marc Hollanders is Special Adviser on Financial Infrastructure at the Bank for International Settlements (BIS) in Basel, Switzerland. He contributes to the BIS work in the financial stability and markets areas. He also works for the Committee on Payments and Market Infrastructures (CPMI) which is based at the BIS. Currently he is co-chairing the CPMI- World Bank task force on Payments aspects of financial inclusion which released its consultative report in September Previously Marc was Head of the Secretariat of the CPMI. He was co-chair of the task force which prepared the General principles for international remittance services which were published in Daniela Russo is currently Adviser to the Executive Board of the Euroopean Central bank, based in Frankfurt am Main, after having been the Director General of the Payments and Market Infrastructure Directorate General for 5 years and she is Senior Manager since 14 years. She chaired or participated in several working groups or committees working in the field of payment and settlement systems, both at European and global level. Some of these groups involve only central banks (e.g. PSSC, CPSS, CLS and SWIFT Oversight). Other groups involve central banks and securities regulators (ESCB-CESR, CPSS-IOSCO, T2-S Oversight and Derivatives Regulators Forum). Other groups also involve participation of the industry (COGEPS, COGESI, CESAME, MOC, SEPA High Level Group and EPC). Currently she co-chairs the CPMI-IOSCO Policy Standing Group who released a number of important reports in the field of CCP recovery and resilience (Guidance on resilience, Guidance on recovery, Framework for supervisory stress testing) and the Group of Data Expert (DEG) of the FSB that is working on definition oand implementation of for repo markets database that would support financial stability needs. She is also member of a number of International Group (such as the CPMI, the CPMI-IOSCO Steering Group, the FSB-CPMI-IOSCO fmi-cbcm dealing with recovery and resolution issues and at European level the Working Group on CCPs and the Working Group on Interdependencies of the European Systemic Risk Board. (ESRB). ~ 2 ~

4 TUESDAY, DECEMBER 11 09:00-09:30 Welcoming Remarks Central Bank of Turkey 09:30 10:00 10:00 10:45 10:45-11:15 11:15 14:00 13:00 14:15 Introduction and Course Presentation Demet Canakci The program and methodology will be presented. Course participants will also have the opportunity to introduce themselves. Overview of the National Payments System Massimo Cirasino The concept of National Payments System (NPS) as the backbone of a country s financial sector and economy will be explored. What are the pillars of the NPS? What are the main public policy objectives? Who are the main stakeholders? What are the main risks to be addressed? What are the main trends evolving in the different segments of the NPS? BREAK Main International Standards and Good Practices underpinning the National Payments System Massimo Cirasino, Daniela Russo Since 1990, the Committee on Payment and Settlement Systems (CPSS), recently renamed as Committee on Payments and Market Infrastructures (CPMI), has served as main standard setter in the payment system space. Since 2001, the CPSS/CPMI has also partnered with the International Organization of Securities Commissions (IOSCO) to produce key standards and guidance in particular for financial market infrastructures. The World Bank has also developed relevant guidance in this area. The most relevant standards and practices will be presented taking an historical perspective. LUNCH ~ 3 ~

5 14:15 17:00 The CPMI-IOSCO Principles for Financial Market Infrastructures: a global response to emerging challenges and opportunities Daniela Russo In 2012, in response to the 2008 global financial crisis, CPMI and IOSCO completed the review of their body of standards and issued the principles applicable to payment systems, securities settlement systems, central securities depositories, central counterparties and trade repositories. The Principles are also supported by a detailed analysis of the role of authorities in their implementation. An assessment methodology and a disclosure framework complete this complex body of standards, which will be presented in detail in the afternoon session divided by a coffee break when needed. During this session, key aspects of the other CPMI-IOSCO reports that followed the release of the PFMIs will be covered. 17:00 Overview of the payment, clearing and settlement ecosystem in Turkey. 18:00 Emre Karpuz 18:00 END OF DAY WEDNESDAY, DECEMBER 12 09:00-09:15 09:15 10:30 10:30-11:00 11:00 13:00 13:00 14:15 Main Takeaways from Previous day: Group Discussion International Remittances and Cross Border Payments: supporting people on the move and international trade while minimizing risks Marc Hollanders, Massimo Cirasino Over 220 million migrants send regularly remittances back home, involving a total of 700 million people. The cost and efficiency of these services are still not optimal. This session starts by presenting the efforts of the international community to address this matter. It then continues by taking a broader view by looking at the wholesale cross border payment architecture and presenting the most recent measures to address foreign exchange settlement risk. BREAK Regional Integration of Financial Market Infrastructures Massimo Cirasino, Mario Guadamillas Following up from the previous session, this session investigates the successes and failures of the deployment of regional financial infrastructures taking as a framework the World Bank guidelines in this space. LUNCH ~ 4 ~

6 14:15 16:00 16:00 17:00 The Oversight of the National Payments System: an art more than a science. Massimo Cirasino, Daniela Russo, Mario Guadamillas and Marc Hollanders. The pillars of the National Payments System presented in the previous session rely on the presence of an effective oversight function by country authorities. What are the key objectives, instruments, and modalities of payment system oversight? What is the most effective cooperative framework at both the national and international levels? These questions will be addressed in detail in the afternoon session divided by a coffee break when needed. The Oversight of the National Payments System: an art more than a science. Massimo Cirasino, Daniela Russo, Mario Guadamillas and Marc Hollanders. 17:00 END OF DAY THURSDAY, DECEMBER 13 09:00-09:15 09:15 10:30 10:30-11:00 Main Takeaways from Previous day: Group Discussion Key Concepts around the legal and regulatory framework supporting the National Payments System Massimo Cirasino A sound, predictable, fair and non discriminatory legal and regulatory framework is of paramount importance for the safety and efficiency of the NPS. The most relevant legal concepts from settlement finality to e-money, from novation to truncation, among others will be introduced and the emerging challenges in this space will be explored. BREAK ~ 5 ~

7 11:00 13:00 13:00 14:15 14:15 15:30 15:30 16:00 16:00 17:00 17:00 18:00 Retail Payment Systems and Services: the plumbing of a healthy economy. Massimo Cirasino Millions and millions of transactions take place on a daily basis in the marketplace. They are supported by payment services and systems which should be designed to facilitate user needs. The pace of innovation in the retail payments space is accelerated, but what are the real trends? And what are the real needs? The session investigates this fascinating segment of the NPS. Also, the Government and the public sector in general is a heavy user of payment services in every country. Enhancing the efficiency of government collections and disbursements is instrumental in achieving the public policy objectives in the payments space. Key concepts and successful solutions will be presented. This session will also cover recent trends in digital money and virtual currencies. LUNCH Payment Systems aspects of Financial Inclusion Marc Hollanders Around 2 million people do not use regulated financial services. Payment services can be instrumental to foster financial inclusion of these individuals. The CPMI and the World Bank have recently developed guiding principles for the payment aspects of financial inclusion to facilitate usage of transaction accounts by consumers and businesses. This framework will be presented. BREAK Addressing the cyber threat in payment and settlement systems and services. Mario Guadamillas New cyber threats are affecting the payment and settlement ecosystem authorities are mobilizing at both the international and national levels to address this threat. The session presents some of the recent initiatives to protect the FMIs and payment services from cyber risk. Wholesale Payments Fraud Related to Endpoint Security Mario Guadamillas This session will focus on the recently released CPMI report on reducing the risk of wholesale payments fraud related to endpoint security, the CPMI strategy for reducing this risk, and how central banks both individually and collectively can promote, support, and monitor progress in operationalizing the strategy in their respective jurisdictions. 18:00 END OF DAY ~ 6 ~

8 FRIDAY, DECEMBER 14 09:00-13:00 Welcome to SimLand: an interactive case study Applying the concepts, standards and techniques discussed in the previous days, training participants will be divided in groups and will pose as payment system overseers. The characteristics of the country will be provided as well as the key features of the NPS and financial sector. The Groups will need to: Establish the most appropriate oversight environment for SimLand Apply the oversight function to a diverse set of real life challenges, in particular around o The widespread introduction of new instruments and services in the retail space in the country o The upcoming establishment of a central counterparty in the country o Filling up the existing gap in financial inclusion in the country o Addressing Cyber threats 13:00-14:00 14:00 15:00 LUNCH Presentation of the Group discussion on the Oversight of the National Payments System in Simland The Groups will report on the previous days discussions and outcomes on the establishment of the oversight function and the real life challenges. Participants will reflect on the similarities and differences of approaches and draw key conclusions. CONCLUDING SESSION 15:00 16:00 16:00 END OF DAY ~ 7 ~