Payment and Settlement Systems

Payment and settlement systems are an important part of the economic and financial infrastructure, as by ensuring the safe, effective and timely settlement of financial transactions they make a key contribution to the smooth functioning of financial markets, and thereby to general economic stability and efficiency. In the wider sense, payment and settlement systems consist of a set of instruments, procedures, rules and technological support for transmitting information and settling cash or financial instruments between their participants. In a narrower sense, payment and settlement systems entail a formal arrangement based on a private contract or legislation, with multiple membership, standardised arrangements and common rules, for the transmission, clearing, netting and/or settlement of monetary obligations and financial instruments between their participants.

As the central bank, the Bank of Slovenia therefore acts in several roles with regard to payment and settlement systems: it ensures the stability of individual payment system participants, it oversees the security and efficiency of payment and settlement systems, and it operates a payment system that facilitates the settlement of transactions in central bank money. Also of importance is its role as a catalyst and supporter of the activities of market participants, with the aim of improving competition and promoting development. Irrespective of the role in which the Bank of Slovenia acts, its objective is to ensure transparent functioning and the clarity of its basic guidelines for all payment and settlement system participants.