Basic objectives and scope of application of oversight
„Oversight of payment and settlement systems" is a central bank function whereby the objectives of safety and efficiency are promoted by monitoring existing and planned systems, assessing them against these objectives and, where necessary, inducing change.
The concept of central banks oversight of payment and settlement systems has become more distinct and formal over the last fifteen years as part of growing public policy concern with financial stability in general.
Central bank has long played a crucial role in payment and settlement systems by providing a safe settlement asset, by in many cases operating one or more systems themselves, by participating in systems, and by contributing to the agreement and exercise apropriate rules and standards for systems. Central bank promotes systems which provide an effective means of implementing monetary policy and which help to achieve financial stability.
Payment system oversight is an integral part of the tasks assigned to the European System of Central Banks (ESCB) within the European institutional and legislative framework.
In order to give a comprehensive overview of methods, policies and instruments that the Eurosystem applies in its oversight activities, The European Central Bank (ECB) published the document Eurosystem Oversight Framework.