sadc payment system integration project presentation to ameda 25-27 april 2012
TRANSCRIPT
SADC Payment System Integration Project
SADC Payment System Integration Project
Presentation to AMEDA
25-27 April 2012
SADC Payment System Project - DomesticSADC Payment System Project - Domestic
Project Vision
Each SADC country has :– An efficient and effective payment system
• Internationally acceptable• Interlinked within the region
– Supporting the SADC aims of :» Free trade
Payment, Clearing and Settlement Systems
Payment, Clearing and Settlement Systems
Different approaches to Modernisation
– Pure strategic approach– Model-based approach– Operational approach
Achievements
SADC Modernisation so farSADC Modernisation so farIMPLEMENTATIONLAUNCH SENSITISATION
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
SADC Payment System Project - RegionalSADC Payment System Project - Regional
Project Vision
Each SADC country has :– An efficient and effective payment system
• Internationally acceptable• Interlinked within the region
– Supporting the SADC aims of :» Free trade
SADC Payment SystemSADC Payment System
RISDP – for 2018 (being revised)(Regional Indicative Strategic Development Plan)
A single currency A SADC Central Bank
This will entail a change in thinking from sovereign to regional
SADC Payment SystemSADC Payment System
Building a model – possible role for CMA based on the Rand as a settlement currency
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
SADC Payment SystemSADC Payment System
Building a model – possible role for CMA Possibly 3 phases:
– Model 1• Settle local transactions in-country • Settle cross-border transactions in a central CMA system
– Banks will have individual accounts– Model 2
• Settle all transactions in a central CMA system– Banks will have individual accounts
– Model 3• Settle all transactions in a central CMA system
– Banks may settle through their head office to centralise their Treasury functions pool liquidity
FNB ABSA
ACH
NFNBBank
W/hoek
NACH
South Africa Namibia
CMA Clear
CMA Settlement
Model 1Model 1
FNB ABSABank
W/hoek
South Africa Namibia
CMA Clear
CMA Settlement
Model 2Model 2
NFNB
FNB ABSA NFNBBank
W/hoek
South Africa Namibia
CMA Clear
CMA Settlement
Model 3Model 3
SADC Payment SystemSADC Payment System
Building a model – possible role for CMA Going forward:
– Model 1 can be achieved at relatively low cost• Minimal expenditure on equipment and
systems• Initial CMA Settlement feature hosted
by SARB using a ring-fenced infrastructure
– If approved – work to start early 2012
SAMOS Participant Bank to SAMOS Participant Bank Payments
SAMOS Participant
Bank SWIFT FIN ZDS
Copy Service
13
SAMOS
• RTL• CPL and CBPL• Loans• Reserve Management• Settlement• Management Instruction• RESS Account.
MT103./MT202
MT
09
6
MT
09
7
MT/103MT202
SAMOS Participant
Bank
Dr
SAMOS Bank A
Cr
SAMOS Bank B
CMA Domestic Bank to CMA Domestic Bank Payments
Domestic Participant
Bank SWIFT FINCopy
Service
14
Domestic RTGS
• RTL• CPL and CBPL• Loans• Reserve Management• Settlement• Management Instruction• RESS Account.
MT103./MT202
MT
09
6
MT
09
7
MT/103MT202
Domestic Participant
Bank
Dr
Domestic Bank A
Cr
Domestic Bank B
QB March 2011
SAMOS Participant
Bank
CMA Participant
BankSWIFT FIN ZDS
Copy Service
15
MT202
MT
09
6
MT
09
7
MT202
1
2
3
4
5
6
3.1
SAMOS Bank
3.2
SIRESS Account
5.1
SAMOS Account
5.2
CMA Bank
MT9
10
SIRESSSAMOS
Proposal to Fund SIRESS Accounts
SAMOS Participant Bank to CMA Participant Bank Cross Border Payments Bypass SAMOS system (Normal settlement between CMA Banks)
SAMOS 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 RESSCopy
Service
MT103./MT202
2
3
4
6
MT103./MT202
MT
09
6
MT
09
75
1
Dr
SAMOS Bank
Cr
CMA Bank
Receive payments from counterparts FX deal Interbank loans
Utilising funds in the Settlement account Utilising funds in the Settlement account
Proposal for Phase 1 of the integrated system
Proposal for Phase 1 of the integrated system
Keep the system as simple as possible– No collateralised loans provided for in the
system Key considerations
– Promote interbank loans– Central banks to assist clearing banks in
their jurisdictions to access liquidity as far as possible
SADC BA StakeholdersSADC BA Stakeholders
SADCBA Organizational structureSADCBA Organizational structure
End – Thank YouEnd – Thank You