Assessment of the Norwegian financial infrastructure The financial crisis was a reminder that increasingly complex financial instruments and demanding technological solutions have increased risk in the financial infrastructure. In the  4  Within certain amounts. Customers must still enter their PIN code in connection with large payments. BIS central bankers’ speeches  3  aftermath of the crisis, the international recommendations for the financial infrastructure have been tightened. 5 The new principles provide a comprehensive standard for the financial infrastructure across borders and across various systems. The purpose is to promote a robust and efficient financial infrastructure 6 that supports the stability of the global financial system. The new principles devote considerable attention to such areas as operational risk, derivate exposure and the use of central counterparties. Norges Bank oversees financial infrastructure and supervises interbank clearing and settlement systems. There are two systems that are licensed by Norges Bank to provide clearing or settlement: NICS and DNB as a private settlement bank. For these systems, Norges Bank, as supervisory authority, may require that owners take corrective action for noncompliance with licence terms or the Payment Systems Act. In collaboration with Finanstilsynet, Norges Bank has recently conducted an assessment of important parts of the financial infrastructure in Norway in accordance with the international principles. 7 The main conclusion is that the financial infrastructure in Norway is robust and efficient. Nevertheless there is a need for some improvements.
The bill states that banks will have an obligation to accept cash from customers and make deposits available to customers in the form of cash. This is a further specification of banks’ responsibility for cash handling. The bill also gives banks the freedom to choose how services are to be organised, as long as they are able to meet customer demand. Conclusion Let me sum up: The Norwegian payment system is efficient and up-to-date. It gives the nation a competitive advantage over many other countries. The owners must have management systems that enable them to have sound control of operations. The owners’ responsibility also includes backup solutions. This responsibility does not change if all or parts of operations are managed by others. Payments can become cheaper, faster and more user-friendly than they are at present. Banks should price payments so that they achieve acceptable earnings and promote profitable investments. This will also serve the interest of customers. It is of benefit to us, as a society, that banks and other operators are now investing in secure and forward-looking solutions. The aim must be to remain at the forefront of international developments. There is growing urgency to put in place new solutions. In this respect, the system owners – the banks – have collective interests that go beyond pure private financial considerations of the individual bank. Thank you for your attention. 6  BIS central bankers’ speeches