Oversight
Payment and settlement systems are crucial for the smooth operation of the financial sector and the broader economy. However, they could carry risks for their participants, and transmit disruptions across the economy and the financial system. That’s why central banks place strong emphasis on payment and settlement systems oversight (PSO).
According to the definitions and approaches set forth by the Bank for International Settlements “Oversight of payment and settlement systems is a central bank function whereby the objectives of safety and efficiency are promoted by monitoring existing and planned systems, assessing them against these objectives and, where necessary, inducing change.”
The Central Bank of Armenia carries out oversight function in accordance with the policy set out in the document titled “The Concept of the Central Bank of the Republic of Armenia for the Implementation of Oversight over Payment and Securities Settlement Systems”. The Concept defines the principles, competencies, objectives and scope of PSO implementation, requirements for the systems included in the PSO framework, the PSO implementation process, provision of reports and information on PSO results and approaches to international cooperation.