In addition, the Payment System Act confers on Norges Bank the responsibility for licensing and supervision of systems for clearing and settlement of interbank money transfers. BIS central bankers’ speeches  5  transactions are crucial to financial stability. A robust financial system is not only dependent on solid banks. The infrastructure must also be able to withstand shocks. Large amounts are settled in the payment system every business day. If the system fails, payment flows can be interrupted, with serious consequences for banks, private individuals, the business sector and public administration. Pension and wage payments may be delayed, and businesses may not be paid for goods sold. Problems can spread from one bank to another if one of the banks cannot meet its payment obligations. Today, payments are largely made by cashless means using deposit money. This places even greater demands on the payment system to function as intended. Chart: Net settlements at Norges Bank Norges Bank’s system for net settlement of interbank payments is the core of the Norwegian payment system. There are 22 banks that participate directly in net settlements (first-tier banks), while 110 banks participate indirectly (second-tier banks), through a private settlement bank. The two most important private settlement banks in Norway are DNB and Sparebank 1 Midt-Norge. Second-tier banks, normally small banks, have risk exposure towards their settlement banks. The risk to the payment system as a whole increases when many banks use the same settlement bank.
François Villeroy de Galhau: Financial stability in the age of digital industry Introducing speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at the Paris Europlace International Financial Forum, New York City, 18 April 2016. *  *  *  Ladies and gentlemen, I would like to introduce this third round table by presenting the latest issue of the Banque de France Financial Stability Review entitled “Financial Stability in the Digital Era”. This new edition of the FSR addresses a very topical issue in the financial world, the impact of digitalisation and how to regulate such changes where necessary. I am keen to hear today’s exchange of views. In this FSR, we have gathered contributions from prominent academics, practitioners and policy-makers in order to shed light on the impact of innovation on financial stability. I would like to express my sincere thanks to all the contributors who have provided their views and analyses on such a technical and forward-looking topic. I cannot list all the contributors just now but I would like to give a special mention to Ms Karen Gifford who is with us today. The contributions presented in the FSR are very diverse in nature. The aim of the FSR is to help readers form an opinion; it is not designed to convey the explicit message of the Banque de France. The core aims of our Review are to exchange ideas, explore a given theme from various angles, and juxtapose different analyses and opinions.