Transcript A South African Perspective on the Oversight of the

SADC Payment System
Integration Project
Presentation to AMEDA
25-27 April 2012
SADC 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

Different approaches to Modernisation
– Pure strategic approach
– Model-based approach
– Operational approach

Achievements
SADC Modernisation so far
LAUNCH SENSITISATION
ANGOLA
BOTSWANA
DRC
LESOTHO
MADAGASCAR
MALAWI
MAURITIUS
MOZAMBIQUE
NAMIBIA
SEYCHELLES
SOUTH AFRICA
SWAZILAND
TANZANIA
ZAMBIA
ZIMBABWE
INFO &
STOCKTAKING
VISION & CONCEPTUAL
STRATEGY
DESIGN
BUS. PROC TECHNICAL
SPECS
SPECS
DEVELOP/
IMPLEMENTATION
PROCURE
SADC 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 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 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 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
Model 1
South Africa
Namibia
CMA Settlement
FNB
ABSA
Bank
W/hoek
NFNB
ACH
NACH
CMA Clear
Model 2
South Africa
Namibia
CMA Settlement
FNB
ABSA
NFNB
CMA Clear
Bank
W/hoek
Model 3
South Africa
Namibia
CMA Settlement
FNB
Bank
W/hoek
ABSA
CMA Clear
NFNB
SADC 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
MT/103MT202
MT103./MT202
SAMOS
Participant
Bank
SAMOS
Participant
Bank
SWIFT FIN
ZDS
Copy
Service
MT097
MT096
SAMOS
SAMOS Bank A
Dr
•
•
•
•
•
•
•
RTL
CPL and CBPL
Loans
Reserve Management
Settlement
Management Instruction
RESS Account.
SAMOS Bank B
Cr
13
CMA Domestic Bank to CMA Domestic Bank Payments
MT/103MT202
MT103./MT202
Domestic
Participant
Bank
Domestic
Participant
Bank
SWIFT FIN
Copy
Service
MT097
MT096
Domestic RTGS
Domestic Bank A
Dr
•
•
•
•
•
•
•
RTL
CPL and CBPL
Loans
Reserve Management
Settlement
Management Instruction
RESS Account.
Domestic Bank B
Cr
14
Proposal to Fund SIRESS Accounts
SAMOS
Participant
Bank
MT202
1
CMA
Participant
Bank
SWIFT FIN
ZDS
Copy
Service
MT097
3
MT096
2
4
6
SAMOS
SIRESS
5
SAMOS Bank
SIRESS Account
SAMOS Account
3.1
CMA Bank
3.2
5.1
5.2
15
QB March 2011
SAMOS Participant Bank to CMA Participant Bank Cross Border Payments
Bypass SAMOS system (Normal settlement between CMA Banks)
1
MT103./MT202
MT103./MT202
6
2
SWIFT FIN
RESS
Copy
Service
SAMOS
Participant
Banks
MT097
MT096
3
CMA
Participant
Banks
5
4
SIRESS
SAMOS
•
•
•
•
•
•
•
RTL
CPL and CBPL
Loans
Reserve Management
Settlement
Management Instruction
RESS Account.
• CPL and CBPL
• Settlement
• Management
Instruction
• Admin Instructions
SAMOS Bank
Dr
CMA Bank
Cr
16
Utilising funds in the Settlement account



Receive payments from counterparts
FX deal
Interbank loans
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 Stakeholders
SADCBA Organizational structure
End – Thank You