Central bank payment and settlement services with respect to cross-border and multi-currency transactions (Noël Report)

September 1993

Foreword

As a follow-up to the Report of the Committee on Interbank Netting Schemes, the Working Group on Central Bank Payment and Settlement Services (Working Group) was established to examine a range of options that central banks might consider in an effort to help reduce risk and increase efficiency in the settlement of cross-border and multi-currency interbank transactions. The goal of the analysis was to identify and promote a common understanding of the advantages and disadvantages of different payment and settlement services that central banks might offer. The report neither recommends a preferred option nor should it be construed as indicating that central banks, either individually or as a group, are prepared to offer one or more services. Indeed, the study points out that individual central banks may weigh differently the advantages and disadvantages of various options, given their differing institutional, legal, and policy perspectives. Furthermore, the study recognises that central bank services are likely to continue to develop over time in conjunction with, or perhaps as a catalyst for, market developments.