Oversight of payment systems and infrastructures
As part of its financial stability mandate, the Banque de France helps oversee a range of payment systems and market infrastructures.
Financial market infrastructures process financial flows between players in the financial system. Four types of infrastructure exist:
Each infrastructure brings together participants or members, most of which are credit institutions. Each infrastructure therefore interacts with a large number of players/platform users.
Financial market infrastructures operate at the heart of the financial system and help it to run smoothly. Their central position in the financial ecosystem implies that they concentrate a number of risks, including:
The financial crisis of 2008 was an important test for the resilience of financial market infrastructures, which proved their robustness. They make an important contribution to the transparency of financial markets as they require the use of common operating guidelines. In the wake of the 2008 financial crisis, the G20 therefore wished to promote their use.
The growing importance of the role of infrastructures has led to the strengthening of the regulatory standards applicable to them.
Market infrastructures involve several players:
At international level (Bank for International Settlements), the Banque de France participates in the Committee on Payments and Market Infrastructures (CPMI), a discussion forum for the central banks of 28 countries on payment, clearing and securities settlement systems.
The French financial market infrastructure landscape comprises a large-value payment system (T2-BF), two retail payment systems (CORE(FR) and SEPA(EU), a clearing system (LCH SA) and a securities settlement system (ESES France).
The sector has experienced considerable changes over recent years as a result of European financial integration:
All flows processed by French infrastructures flow into T2-BF, ensuring settlement in central bank money in accounts held by the Banque de France. With the exception of CORE(FR), which has its own private network, French infrastructures communicate via the services provided by SWIFT (Society for Worldwide Interbank Financial Telecommunication).
French oversight and supervisory bodies