The official site of Italy's central bank

Payment system oversight

Efficient and reliable payment systems foster the effectiveness of monetary policy and the stability of the financial system, as well as ensuring maintenance of the public’s confidence in the currency, the mechanisms for its transfer and the use of payment instruments.

Payment system oversight is a function that has long been performed by central banks, but its recognition in law is relatively recent. In Europe, under Article 105(2) of the EC Treaty and Article 3 of the Statute of the European System of Central Banks and of the European Central Bank one of the key tasks of the ESCB is “to promote the smooth operation of payment systems”.

In the Eurosystem the Governing Council of the ECB has the task of defining the oversight policy while, in conformity with these guidelines, the individual NCBs are required to control their respective systems with a degree of autonomy that increases with the prevalence of the national interest.

In the Italian legal system Article 146 of the Consolidated Law on Banking grants the Bank an exclusive role in promoting the smooth operation of the payment system and the power to issue regulations to ensure efficient and sound clearing and payment systems.

In implementing the latter provision, the Bank issues provisions aimed at making its oversight activity transparent by clarifying its objectives, scope and instruments; within the Eurosystem it contributes analyses and proposals concerning oversight and participates in the committees in which payment system policies are discussed.

The Bank’s oversight activity covers (public and private) payment systems, infrastructures and payment instruments and moves in three main directions: 1) completion of monetary integration; 2) maintenance of financial stability; and 3) promotion of technological innovation.