2005年-ECB欧洲央行_Assessment_of_SORBNET-EURO_and_BIREL_against_the_Core_Principles_17页_1mb

Summary of the Assessment of SORBNET-EURO and BIREL Against the Core Principles

Introduction and Executive Summary

In January 2005, the European Central Bank (ECB) Governing Council approved the connection of SORBNET-EURO, the real-time gross settlement (RTGS) system of the Narodowy Bank Polski (NBP), to the TARGET system via BIREL, the RTGS system of the Banca d'Italia (BdI). This connection was subject to oversight against the Core Principles for Systemically Important Payment Systems, which were adopted by the ECB in January 2001 as minimum standards for the Eurosystem's common oversight policy.

The assessment was conducted ex ante (before the launch of SORBNET-EURO on 7 March 2005) by the NBP and BdI, with the ECB coordinating the oversight review. The overall outcome of the assessment was positive, indicating that SORBNET-EURO achieved a high degree of compliance with all relevant Core Principles. The BIREL system also maintained its full compliance with the Core Principles, with no adverse impact from the connection to SORBNET-EURO.

Some open issues were identified, particularly related to Core Principle I (legal basis) and Core Principle VII (business continuity). The owners of SORBNET-EURO and BdI are expected to address these issues and improve compliance.

It should be noted that the assessment was conducted prior to the launch of SORBNET-EURO, and thus may not reflect all the latest developments, especially regarding actions taken by the NCBs to resolve minor deficiencies.

Methodology and Procedures

• The Core Principles were adopted by the ECB Governing Council in January 2001 as the minimum standards for payment system oversight.
• The Eurosystem established a common methodology based on the IMF Guidance Note from August 2001.
• Ex ante assessments were carried out:
  • NBP assessed SORBNET-EURO against the Core Principles.
  • BdI conducted an impact assessment of BIREL.
• The ECB peer-reviewed these assessments and performed a gap analysis.
• Where necessary, the ECB requested clarifications or complementary information from the NBP and BdI to resolve open issues.

Overall Assessment

2.1 Overview

• Table 1 and Table 2 summarize the degree of compliance of SORBNET-EURO and BIREL with the Core Principles.
• SORBNET-EURO was found to have a high degree of compliance with all relevant Core Principles.
• BIREL maintained full compliance with the Core Principles, with no adverse impact from the connection to SORBNET-EURO.

2.1.1 Compliance of SORBNET-EURO

• Core Principles I to X were fully observed, with the exception of Core Principle V, which was not applicable.
• Core Principle VII (business continuity) had some open issues that required further attention.

2.1.2 Impact on the Compliance of BIREL

• BIREL remained fully compliant with the Core Principles.
• The connection did not affect the legal basis, risk management, or operational reliability of BIREL.
• The BdI is responsible for ensuring that the NBP and its participants understand the risks involved.

Detailed Assessment and Main Findings (By Core Principle)

2.2.1 Core Principle I – Legal Basis

• Legal infrastructure and legal risks were clearly identified and appropriately addressed.
• The connection is legally provided for through an agency contract (contratto di mandato) under Italian law.
• Legal opinions on capacity and country for foreign participants were required, but the SORBNET-EURO rules were unclear in this regard.
• The NBP and BdI are jointly responsible for the connection, except for the maintenance of relationships with Polish banks, which is the sole responsibility of the NBP.
• The BdI plans to request a legal note from the NBP to clarify its legal status and obligations.

2.2.2 Core Principle II – Understanding of Financial Risks

• The rules and procedures of both systems are clear and transparent.
• The NBP has closely cooperated with participants to ensure they understand the financial risks.
• The rules largely mirror the SORBNET-ZLOTY system, which is already well understood.
• The system rules are available to participants and the public on the NBP's website.

2.2.3 Core Principle III – Credit and Liquidity Risk Management

• The system has clear procedures for managing credit and liquidity risks.
• No credit risk arises between participants due to real-time gross settlement.
• The NBP operates on a positive balance basis and is not granted intraday credit.
• Intraday credit is limited to the NBP's deposit with the BdI.
• Liquidity risk is managed through queuing facilities, gridlock resolution, and monitoring mechanisms.
• The settlement mechanism is secure and well-documented.

2.2.4 Core Principle IV – Prompt Final Settlement

• Final settlement occurs on the day of value, preferably during the day or at the end of the day.
• The TARGET Guideline and legal frameworks of both systems ensure compliance.
• The NBP ensures that all TARGET rules are followed.
• The system documentation is comprehensive and supports the timely completion of daily settlements.

2.2.5 Core Principle V – Multilateral Netting

• Not applicable to the TARGET system since it provides real-time, unconditional, and irrevocable settlement in central bank money.
• No need to assess netting mechanisms for SORBNET-EURO as it operates in a gross settlement environment.

2.2.6 Core Principle VI – Settlement Assets

• Settlement occurs in central bank money (NBP’s books), thus no credit or liquidity risk is incurred by participants.
• Settlement assets are safe and sound.
• The eligible collateral is approved by the Governing Council.

2.2.7 Core Principle VII – Security and Operational Reliability

• The system has security policies and risk analysis methodologies in place.
• The BdI and NBP have business continuity arrangements.
• The BIREL system is not negatively impacted by the SORBNET-EURO connection.
• Operational reliability and security are ensured through backup and secondary sites, disaster recovery procedures, and periodic testing.

2.2.8 Core Principle VIII – Transparency and Information

• The BdI will provide transparent information to participants and the public about the connection.
• The rules and procedures are clearly documented and accessible.

2.2.9 Core Principle IX – Participant Access and Exit

• Access and exit criteria are well-defined.
• Collateral management and intraday liquidity are the sole responsibility of the NBP.

2.2.10 Core Principle X – System Oversight and Supervision

• Oversight is coordinated by the Eurosystem.
• The NBP and BdI have clear roles and responsibilities.
• The system is subject to formal risk analyses and periodic reviews.

Conclusion

• The overall assessment of SORBNET-EURO and BIREL against the Core Principles was positive.
• SORBNET-EURO achieved a high degree of compliance with the Core Principles.
• BIREL maintained its full compliance with the Core Principles, with no adverse impact from the connection.
• Some open issues remain, particularly regarding legal clarity and business continuity, which the NBP and BdI are expected to address.
• The legal framework and operational procedures of both systems are secure and well-documented.
• The assessment was conducted ex ante, and may not reflect all post-launch developments.