VISION_Strategy_Document_march_2006

[Virtual Presenter] Good morning, everyone. We are here today to discuss a very important topic – the Bank of Jamaica's Vision of the Future National Payment Systems Executive Summary. In this presentation, we will review the various elements of this vision and discuss how it could shape the future of payment systems in Jamaica..

[Audio] The Bank of Jamaica (BOJ) is responsible for the oversight of the payment and settlement systems in Jamaica. In March 2006, they released a Vision of the Future National Payment Systems Executive Summary aiming to ensure greater safety and efficiency of these systems, reduce systemic risks, and minimize BOJ credit risk. To achieve this, the BOJ has taken a leadership role in coordinating the necessary actions to upgrade the payment systems and is also responsible for maintaining confidence in the currency and the financial system. To that end, they believe a cooperative approach, involving all stakeholders in the payment system including financial regulators, financial institutions, telecommunications providers, and private sector bodies, is needed and the National Payments Council has been established for this purpose..

[Audio] The Bank of Jamaica has a revolutionary vision for Jamaica's national payments system of the future. Taking a comprehensive, strategic approach to reform, the BOJ seeks to build an efficient and cost-effective payments system that guarantees the safety and security of the financial system. This includes examining all aspects of the payments system, including service providers, users, technology, and legal and regulatory matters. Additionally, the BOJ is collaborating with stakeholders, such as professional disciplines, to create synergetic outcomes and maximize benefits. The BOJ is aiming to tackle the most pressing issues in the existing payments system and create a brighter future for Jamaica..

[Audio] The Bank of Jamaica's Vision Document is an extensive plan for the evolution of payments in Jamaica. It involves the formation of a secure and reliable legal structure, as well as strategies to increase efficiency and lower costs. The Vision Document also calls for changes to the existing legislation, and details the governing rules of different payment systems. The Bank of Jamaica is spearheading the project, actively addressing any outstanding matters and collaborating with stakeholders to ensure the full implementation of the document. All of these efforts will result in a secure, efficient, and cost-effective payments system that meets the needs of customers..

[Audio] The Bank of Jamaica has released an ambitious vision for the nation's payment systems of the future. It plans on introducing a modern Real Time Gross Settlement System to act as the backbone of the payment system - a large-value transfer system with Real-Time Gross Settlement function to replace the current CIFTS system. This system will have regulations and procedures in place to manage legal, financial and operational risks, and provide management tools to handle liquidity risks. Additionally, the plan seeks to strengthen the communication network between the Bank and system participants to reduce and eventually eliminate manual and paper-based procedures. Security measures will be strengthened, contingency plans and disaster recovery mechanisms implemented, pricing policies consistent with the overall objectives introduced, and access criteria for system participants clearly defined. The Bank of Jamaica is dedicated to creating a safe and efficient payment system to benefit the people of Jamaica..

[Audio] The Bank of Jamaica (BOJ) released its Vision of the Future National Payment Systems Executive Summary in March 2006. This vision included four pillars. Pillar III is the fully developed and closely integrated interbank money market which is vital for liquidity management. To enable such a market to develop, the legal, regulatory and oversight framework must be strengthened. Pillar IV is the efficient, sound, and interoperable retail payment systems, which should provide a wide range of payment services. The BOJ will support such systems through its role as settlement agent, participant, overseer, and catalyst for change. To achieve this, the existing ACH must be designed to operate efficiently and facilitate the move towards electronic credit and debit instruments. The financial risks in the ACH can be reduced by removing large value items from the cheque clearinghouse, and settlements assurance procedures may be introduced as an incentive to move large value payments out of the current system..

[Audio] The Bank of Jamaica released the Vision of the Future National Payment Systems Executive Summary in March 2006, outlining plans to create an efficient payments system which encourages the use of electronic payments and the integration of government collections and disbursements with the National Payment System. Retail systems may be operated by financial or non-financial entities but must comply with the Bank's safety and efficiency standards. The Bank promotes the utilization of central bank money for both big and small value payments, and pricing policies should consider benefits and costs, while also having effective prevention measures against fraud in place. In addition, government payments should be completed electronically so as to improve efficiency and decrease the resources lying free in bank accounts..

[Audio] In March 2006, The Bank of Jamaica (BOJ) released its Vision of the Future National Payment Systems Executive Summary, which outlined a framework for modernizing securities settlement systems in Jamaica. This included linking the settlement of securities and funds to eliminate principal risk and using central bank money for the settlement of securities transactions to reduce or eliminate risk. Moreover, the report proposed new procedures for issuing securities in book-entry format and for improving custody arrangements. An integrated and strengthened regulatory and oversight framework was also established with the BOJ and Financial Services Commission (FSC) cooperating in the oversight of securities settlement systems. Lastly, fair open access and transparency on the associated risks and costs were mandated. If these reforms are implemented, Jamaica will be able to make strides in developing a safer and more efficient payment system..

[Audio] The Bank of Jamaica recently released their Vision of the Future National Payment Systems Executive Summary, a document outlining their plans for payment systems oversight in Jamaica. They plan to have clear legislative authority to ensure payment mechanisms contribute to the integrity, efficiency, and safety of the financial system and the implementation of monetary policy. The Bank of Jamaica also seeks to promote competition in the payment services market and protect consumer interests. To make sure users' needs are met, they intend on overseeing both systemically important and retail systems. In order to effectively carry out these responsibilities, the Bank of Jamaica plans to create the right organizational structure and staffing, promote participant cooperation, and verify that payment systems satisfy user needs and requirements..

[Audio] The Vision for the Future of the National Payment Systems from the Bank of Jamaica provides a plan for an up-to-date, dependable and protected payments framework. The Payments Council has been founded to guarantee that all partners have a voice in payment and securities settlement systems development. The Council is collaborating to determine the communication technique for the change objectives and strategies, just as every person's job in guaranteeing these are executed. Both the Bank of Jamaica and the Financial Services Commission are devoted to ensuring the fundamental changes are set up to give a powerful, reliable and secure payments system..

[Audio] I'd like to thank you for taking the time to review the Bank of Jamaica's Vision of the Future National Payment Systems Executive Summary. We have defined some important terms in our eleventh slide like "Bank for International Settlements," "Customer Inquiry and Funds Transfer System," "Committee on Payment and Settlement Systems," "Delivery versus Payment," and "Electric Funds Transfer at Point of Sale." This will provide a better understanding of the Bank of Jamaica's plans moving forward. Thank you again for being here and looking forward to the future with us..