For more information about CHIPS, see Bank for International Settlements, Payment Systems
in the Group of Ten Countries (December 1993), pp.
Patrick Parkinson and Jeff Stehm-Staff, Board of Governors Adam Gilbert, Emily Gollob, Lauren Hargraves, Richard Mead, and Mary Ann Taylor-Staff, Federal Reserve Bank of New York Prepared as a staff study in fall 1991 Interest in clearance and settlement arrangements in securities markets by the Federal Reserve and other central banks reflects an increasing awareness that disturbances in settlement processes in those markets can adversely affect the stability of payment systems
and the integrity of the financial system generally.
Moreover, from an international standpoint, the efficiency and soundness of national payment systems
are becoming increasingly interlinked because of the need to make and settle the growing number and variety of off-shore, cross-border, and multicurrency payments.
Thus, over the years we have been committed to higher capital standards, to the reduction of risk in the payment system
, to finality criteria for clearing-houses and payment systems
, and to improved international cooperation in the areas of payment systems
and banking supervision.
Although the role of central banks in the payment system
varies from country to country, they have several common areas of concern regarding their countries' payment systems
as broadly defined, including both clearing and settlement.