Oversight function

Payment systems and securities settlement systems (hereinafter: payment and settlement systems) consist of a set of instruments, procedures, rules and technological support for transmitting information and settling funds or financial instruments between their participants. Payment and settlement systems in a modern economy thus represent a basic infrastructure that facilitates the transfer of funds and financial instruments between market entities. Secure and efficient payment and settlement systems are therefore vital for the secure and efficient functioning of the financial system, and their reliability and efficiency contribute to the general stability and efficiency of the economy. In light of the above, in their general role as guarantors of financial stability, central banks have a specific interest in the smooth functioning of these systems.

The Bank of Slovenia’s role in the oversight of payment and settlement systems is set out in general terms by the Treaty on the Functioning of the European Union, the Statute of the European System of Central Banks and of the European Central Bank and the Banking Act, and more specifically by the Payment Services and Systems Act (in Slovene) and the Regulation on the application of the (EU) Regulation on improving securities settlement in the European Union and on central securities depositories (in Slovene). On the basis of the aforementioned regulations the Bank of Slovenia is competent and responsible for the oversight of payment and settlement systems.

The objective of the payment and settlement systems oversight is to ensure their security and effectiveness, through monitoring, analysing and inducing change, thereby contributing to maintaining financial stability, reducing systemic risk and maintaining public confidence in payment and settlement systems. In conducting oversight of payment and settlement systems the Bank of Slovenia follows the requirements of the aforementioned legal basis, the Eurosystem guidance (e.g. the Eurosystem oversight policy framework and the Revised oversight framework for retail payment systems), and international principles.