The importance of payment and settlement systems

Payment and settlement systems have become particularly important worldwide over the past decades, owing to the increase in both the volume and value of commercial and financial transactions (on money and forex markets) amid globalisation and free movement of capital.

Likewise, at national level, along with Romania's joining the European Union and the expansion of the economy, the volume of payment transactions increased significantly, while economic agents showed a stronger interest in the existence of efficient and safe payment systems.

NBR's role

The NBR, as any other central bank, is interested in the prudent design and management of payment and settlement systems in the domestic currency. Thus, the NBR attaches a particular importance to the smooth functioning of these systems, as well as to the minimization of potential risks associated with their operation.

The smooth operation of payment and settlement systems is vital for ensuring a strong national currency and for successfully implementing the central bank's monetary policy, for the good functioning of financial markets and for maintaining the stability of the entire financial and banking system.

The statutory task of the National Bank of Romania is to promote the smooth functioning of payment systems in its capacity as Romania's central bank (Art. 2 para. (2) letter b) of Law No. 312/2004 on the Statute of the National Bank of Romania) and as a member of the European System of Central Banks (Art. 105 para. (2) of the Treaty establishing the European Community and Art. 3 of the Statute of the European System of Central Banks and of the European Central Bank).

The NBR fulfils this task by:

• providing settlement means for payments and securities; thus, the NBR runs a payment system for large-value payments in lei (ReGIS), a payment system for large-value payments in Euro (TARGET2-România), as well as a central depository and securities settlement system (SaFIR);
• supervising payment and securities settlement systems; thus, the NBR sets forth standards with a view to ensuring sound and efficient systems for processing transactions in RON and assesses the systems' compliance with these standards;
• cooperating with the national authorities, the European System of Central Banks, the European Central Bank, as well as with any other relevant international bodies, with a view to ensuring a regulatory and supervisory framework of payment and securities settlement systems harmonized with international standards;
• acting as a catalyst for change; the NBR promotes efficiency across payment systems and the infrastructures adjustment to SEPA requirements.