Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: Payment systems can be defined as a funds transfer system processing third
party payments, supervised by a central bank or appropriate Regulatory
Authority. (S.W.I.F.T., 1997). Therefore the importance of a well managed
system, through regulatory methods, as well as self-regulation by the industry,
cannot be over emphasized. According to Humphrey, (1996: 923), the
composition of non-cash transactions consists of the following five payment
instruments. The paper-based transactions are composed of cheques and paperbased
giros payments. The electronic transactions consist of electronic giro, debit
card (POS), and credit card payments. According to Vives, (1998: 168) there are
normally two goals when a country wants to change its payment system, either it
wants to increase efficiency, or it wants to reduce risk. If there is a conflict
between risk and efficiency, the less risky solution must prevail.
Credit risk and systemic risk poses the greatest challenges to payment systems.
Credit risk exists when credit was granted to a participating member, which
cannot fulfil its debt at the stage of payment need to be made. Systematic risks
encompass situations in which the credit or liquidity problems for one or more
market participants create substantial credit or liquidity problems for participants
elsewhere in the financial system. (Emmons, 1997: 11).
In order to create international standards in addressing the risk issues involved
the Bank of International Settlements was established. The Bank's predominant
tasks are to promote the co-operation of central banks and to provide additional
facilities for international financial operations, and to create and maintain stability
of international monetary and financial systems. The Bank of International
Settlements published the Lamfallussy report. From the findings of this report a
series of policy recommendations regarding netting schemes. The Basle
Committee was established by the Central Bank Governors of the Group of Ten
countries as a result of serious failures and disturbances in the international
currency and banking markets, with the main objective to improve the collaboration between bank supervisors world wide. The objective is met by using
three different methods, namely. Exchange information on national supervisory
arrangements, improving the effectiveness of techniques for supervising, and the
setting of minimum supervisory guidelines and recommendations and
recommended statements of best practices, expecting authorities to take steps to
implement in their respective countries.
To enable secure international payments the Society for Worldwide Inter-bank
Financial Telecommunications (SWIFT) was created, with the mission to provide
technology-based communication services across all financial markets through
member banks and their market infrastructures so that they can meet their own
and their end-customers' needs.
There is a growing awareness among central banks of the need to ensure the
integrity, the security and the stability of their country's payment system. The
central bank's main function was to regulate the country's currency circulation, to
facilitate' payment transactions and to pursue a credit and monetary policy
serving the interest of the country as a whole. Because of their importance for the
smooth operation of commerce of financial markets, central banks often own
and/or operate large value payment networks themselves rather than leave this
function solely to commercial banks. (Sato et a/., 1995: 37).
Commercial banks, or their agents, perform the vast majority of the clearing and
processing of payment in developed countries, as well as providing the payment
facilities to clients. The United States central bank is the main exception to this
division of responsibility as it provides settlement service as well as check
processing and over one-half of all Automatic Clearing Houses and wire
processing services. (Sato et a/., 1995: 32).
The re-entry of South Africa in the global trade in the early 1990s created new
opportunities and challenges for the country. With the existing established
payment system, South Africa provides a gateway to the Southern African countries. There are a number of fundamental changes in the financial markets,
which have an impact on payment and settlement systems. The first important
factor is the high speed of technological progress. Secondly, the fundamental
change in financial markets concerns the internationalisation of financial flows.
From a central bank point of view, these developments, although in principle to
be welcomed because of their contribution to the effect of allocation of financial
resources, require close attention, as the interrelationships between worldwide
financial markets could also give rise to a propagation of risks. (Koning, 1998:
19).
South Africa's payments system, as a well-functioning system, compares
favourably with the best in the world; this is an essential requirement for
participation in the international finance and trading. The challenge the South
African banks face is the social responsibility to uplift the community on the one
side, and compliance with the international rules and legislation on the other. In
accordance to the minimum requirements set by the Lamfallussy report. The
Reserve Bank of South Africa enforced strong policies via the Banking Council of
South Africa, as well as the different committees and associations dedicated to
certain payment systems. The South African Reserve Bank intent to provide an
Electronic Communications and Transactions Bill in order to promote and
regulate electronic communication and transactions. The Banking Council set
certain criteria that will be implemented from the first of January 2002 on the item
limits applicable to the certain electronic methods of payment. Councils and
associations in the banking sector are established, self-regulatory as well as
government controlled, to enforce rules and regulations to reduce the risk
involved in the industry and comply with international requirements. A strong
legal framework and the enforcement of certain risk prevention methods, for
instance the enforcement of item limits and the change in the law on the crossing
of cheques prove the commitment to participate internationally. The strong
movement to same day settlement, (especially in high value payments via the
SAMOS system), show that the payment industry in South Africa is on an ongoing process of implementing new procedures to comply with the
international standards.
Electronic money can be defined as stored value or prepaid products in which a
record of funds or value available to the consumer is stored on a device in the
consumer's possession. (Bank of International Settlements, 2001: 1). Consumers
benefit from the ability to use payment methods that are inexpensive, convenient,
and accessible. (Bank of International Settlements, 1997: 6).
The participation in the payment processes by non-financial entities, coupled with
the design and widespread use of unknown digital form of monetary value poses
serious threats to the central bank's ability to control monetary policy and
safeguard financial stability.
Card based e-money schemes have been combined with functionality's such as
access control, holder identification or local transportation ticketing.
Network-based e-money schemes are operational or under trail in a limited
number of countries. The existing payment system legislation applies to networkbased
schemes.
The South African Reserve Bank needs to constantly monitor and analyse the
existing and new different methods of payment systems in order to create a low
risk, stable, safe and a trade supportive environment for the improvement of its
own economy, as well as for the Southern African region. Specific attention
needs to be given to the high-value payment systems in order to reduce systemic
risk. The prevalent factor is the real time settlement of the SAM OS (South African
Multi Option Settlement) system. Finally, regulators need to coordinate actions,
through the international and local platforms provides, to implant financial
discipline, manage risk and support cross-border and regional trade. / AFRIKAANSE OPSOMMING: Betaalstelsels kan gedefinieer word as 'n opdragte- of fondsoorplasingstelsel vir
die maak van betalings aan 'n derde party, wat gereguleer word deur 'n sentrale
bank of regering. (SWIFT, 1997). Die belangrikheid van 'n goedgereguleerde
stelsel, deur middel van wetgewing, sowel as selfregulering deur die industrie,
kan nie oorbeklemtoon word nie. Humphry (1996: 923) beskryf die samestelling
van nie-kontant betaalstelsels as die volgende vyf instrumente. Die papier
gebaseerde transaksie wat uit tjeks, papier-gebaseerde "giro' bestaan.
Elektroniese transaksies bestaan uit die elektroniese "giro", debiet- en
kredietkaarte. Volgens Vives (1998: 168) is daar normaalweg twee doelwitte
wanneer verandering aan 'n betaalstelsels aangebring word, naamlik die
verbetering in doeltreffendheid, of die vermindering van risiko, waar die laer risiko
gewoonlik die voorkeur sal kry.
Kredietrisiko en sistemiese risiko hou die grootste uitdagings vir betaalstelsels in.
Kredietrisiko ontstaan waar krediet aan 'n deelnemende lid van 'n stelsel verleen
word en die ander party nie kan presteer op die tydstip van betaling nie.
Sistemiese risko's sluit situasies in waar krediet of likiditeit probleme vir een of
meerdere deelnemers vir ander deelnemers groot krediet of likiditeits probleme
skep in die finansiële stelsel. (Emmons, 1997: 11).
Om risiko's internasionaal aan te spreek is die Bank of International Settlements
gestig. Die organisasie het ten doeI om koördinasie tussen die sentrale banke te
bevorder en stabiliteit te skep in die internasionale monetêre en finansiële
markte. Die Bank of International Settlements het die Lamfallussy verslag
opgestel waarin verskeie beleid aanbevelings aangaande verrekeningstelsels
gemaak word. Die Basle Committee is gestig deur die hoofde van die Groep van
10 lande se sentrale banke weens die mislukking en ontwrigting van
geldeenhede en finansiële markte wêreldwyd, met die doelstelling om
samewerking tussen banke wêreldwyd te bevorder. Dit word bereik deur drie
metodes naamlik, uitruil van inligting wêreldwyd na adviseurs, verbetering in die verskaffing van advies en die daarstel van riglyne en aanbevelings aangaande
die beste praktyke, wat regerings in hul eie lande kan aanwend.
Vir die daarstelling van 'n gestandaardiseerde, veilige intenasionale opdragte en
betalings stelsel is die Society for Worldwide Inter-bank Financial
Telecommunications (SWIFT) gestig, met die missie om 'n tegnologie
gebasseerde opdrag en kommunikasie stelsel daar te stel wat alle markte deur
middel van lede lande en hul infrastrukture kliënte kan bedien.
Daar is 'n toenemende bewuswording onder sentrale banke om die integriteit en
die sekuriteit van hul eie betaalstelsel te verseker. Die hoof funksie van die
sentrale bank is die regulering van die land se geldeenheid, om betalings
moontlik te maak en die daarstel van krediet- en monetêre beleid vir die steun
van die land se belange as geheel. Weens die belangrikheid in die suksesvolle
werking van die kommersiële markte, besit sentrale banke groot gedeeltes van
die verrekeningstelsels eerder om dit aan kommersiële banke oor te laat. (Sato et
aI., 1995: 37). Elke sentrale bank verskaf verskillende verrekeningsdienste
afhangende van faktore soos die verskillende regsfaktore, sosiale faktore,
politieke faktore, internasionale- en mededingende faktore. Kommersiële banke,
of hul agente, is verantwoordelik vir die oorgrootte van verwerkingsaksies in
ontwikkelende lande, asook die verskaffing van die betalingsmiddele. Die
Verenigde State se sentrale bank is die hoof uitsondering wat self die
verrekeningsdienste lewer, die prosessering van tjeks doen, die
verrekeningshuise besit en verwerking dienste lewer. (Sato et al., 1995: 32).
Suid-Afrika se hertoetrede tot die internasionale finansiële wêreld in die vroeë
jare negentig het geleenthede en uitdagings meegebring. Met 'n bestaande
gevestigde betaalstelsel word Suid-Afrika beskou as die deur na die Suider-
Afrikaanse lande. Verskeie fundamentele veranderinge in die finansiële markte
het 'n impak op die betaal- en verrekeningstelsels. Eerstens die spoed van
tegnologiese vooruitgang; tweedens die verandering van die finansiële markte in
terme van kapitaalvloei. Uit die oogpunt van 'n sentrale bank, verg die toekenning van finansiële hulpbronne, intense aandag, omdat die interverwantskappe van
finansiële markte wêreldwyd risiko's verhoog. (Koning, 1998: 19).
Suid-Afrika beskik oor 'n goed funksionerende betaalstelsel wat vergelyk kan
word met die bestes ter wêreld en is van uiterste belang vir die internasionale
deelname in finansiering en handel. Suid-Afrikaanse banke staan voor die
uitdaging om aan sy sosiale verantwoordelikhede te voldoen om die gemeeskap
op te bou aan die een kant en die vereistes om aan internasionale standaarde te
voldoen, soos deur die Lamfallussy veslag voorgeskryf, aan die ander kant. Die
Reserwe bank van Suid-Afrika dwing beleid af via die Banking Council of South
Africa, asook verskeie kommisies en verenigings wat fokus op die verskeie
betaalstelsels. Die Reserwebank van Suid-Afrika beoog om 'n "Electronic
Communications and Transaction Bill" teen die einde van 2001 te publiseer vir
die regulering van elektroniese kommunikasie en traksaksies. In Wetlike
raamwerk en die afdwing van sekere risiko verminderende metodes, byvoorbeeld
item limiete, wat gedurende Januarie 2002 in werking gestel word en die
wysiging in die kruising van tjeks dui op die drastiese stappe wat aangebring
word om internasionaal mededingend te wees, asook by internasionale riglyne in
te pas. Daadwerklike pogings om selfde dag verrekeninge in die hoë
waardestelsel (SAMOS) te implementeer en te voldoen aan die neergelegde
internasionale standaarde.
Elektroniese geld word gedefinieer as 'n gememoriseerde waarde of
voorafbetaalde produkte waarin rekord van fondse of beskikbare waardes van 'n
kliënt gehou word. (Bank of International Settlements, 2001: 1). Verbruikers kry
die voordeel van maklik toeganklike en goedkoop betalingsmetodes. (Bank of
International Settlements, 1997: 6). Die deelname van nie-finansiële instansies in
die betalingsprosesse, daarmee saam die ontwerp en algemene gebruik van
onbekende digitale vorms van monetêre waardes hou 'n bedreiging in vir die
beheer van die sentrale bank om monetêre beleid af te dwing en finansiële
stabiliteit te verseker. Kaartgebaseerde elektroniese geldskema's word in sekere gevalle is die fasiliteit
gekombineer met funksionaliteit in die vorm van toegangsbeheer, houer
identifikasie, of plaaslike transport kaarte.
Netwerk gebaseerde elektroniese geldskema's is slegs in beperkte aantal lande
operasioneel of onder ontwikkeling en bestaande wetgewing aangaande
betaalstelsels word hoofsaaklik toegepas op die skema's.
Daar word voorgestel dat die Suid-Afrikaanse Reserwebank moet op 'n
voortdurende basis bestaande en nuwe verskillende betaalstelsels moniteer vir
die daarstelling van 'n verlaagde risiko, met 'n stabiele- en veilige omgewing wat
steun verleen aan die land se ekonomie, sowel as die omliggende Suider-
Afrikaanse lande. Verdere pogings moet aangewend word word om hoë-waarde
betaalstelsels (SAMOS) se sistemiese risiko te verminder deur van dieselfde dag
vereffening gebruik te maak. Ter afsluiting moet daar met gekoordineerde aksies,
wat plaaslik en internasionaal bestaan, aangewend word om finansiële dissipline
daar te stel, risko's te bestuur en internasionale handel te bevorder.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52867 |
| Date | 12 1900 |
| Creators | De Bruyn, Johan Hendrik |
| Contributors | Roux, A., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 85 p. |
| Rights | Stellenbosch University |
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