This electronic central bank money plays an important role and, like cash, is risk-free. It is used to implement payments between financial institutions participating in the central bank's payment system. In Sweden, this payment system is called RIX and it is operated by the Riksbank. Responsibility for a central payment system is a second central bank task that is of great significance for ensuring that our payments are efficient and safe, and thereby for the financial system. Most non-cash payments in Sweden that are not internal within a bank pass through RIX one way or another. On average, around 21,000 payments are settled in RIX every day to a total value of around SEK 565 billion 4 . In other words, every week an amount is settled that is roughly the size of Sweden’s GDP. RIX also acts as the hub in a large universe of systemically important financial infrastructures that consists of central counterparties, securities companies and clearing organisations. The Riksbank's role is to supply the RIX system and to guarantee that the parties that are members of RIX can settle their payments efficiently. The requirements for operational reliability for the RIX system are very high, as a breakdown would have major repercussions on society. If payments do not reach  4 http://www.riksbank.se/Documents/Riksbanken/RIX/2017/rb_RIX_tertial_3_180119_eng.pdf  4 [12]  counterparties as planned, this could entail problems for the companies and households that are affected.
Lack of transparency can result in delay in tackling the problem and erode public confidence in the soundness of the banking system. Innovation and technological change 21. Asset quality is thus one main issue which Asian banks have to tackle. But one of the results of globalization is that even banks in relatively undeveloped banking systems are now having to cope with the challenge of product innovation and new technology. This can accelerate the transformation of such banking systems: modern computer systems can be installed and banks can make the jump straight from cash to smart cards. The downside is that banks may have less time to build up the skills properly to use the new technology and the new products which their counterparts in developed banking systems have taken many years to BIS Review 55/1997  -5-  acquire. Derivatives are a case in point. While the derivatives markets in the region other than Tokyo are still quite small, these products are certainly being sold to, and in some cases being traded by, local banks in the region; and a number of them have suffered losses as a result. 22. Looking further ahead, the opportunities provided by new technology will pose important strategic challenges for the banks. To what extent, for example, should they invest in new delivery mechanisms such as telephone or internet banking? These channels offer the potential to bring down dramatically the cost of transactions compared with the traditional branch network.