Assessment Of The Risks And The Preventive Measures Of Macau Banks' Electronic Clearance System

The present banking industry of Macau has developed to the stage that huge volume of financial business is transacted through many international financial centers of other countries. During the process of capital clearance with these countries, numerous forms of electronic fund transfer are involved to interact with the clearance systems of their financial centers. As a result of these strong inter-relationships with these countries?clearance systems, we can no longer ignore the risks which are brought about by the exposure with these international clearance systems. This article will attempt to study from the standpoint of Macau抯 banking industry抯 clearance system its risk exposure with the Western countries? electronic central clearance system. It will also provide an analysis of both the internal and external exposure risks which are faced by the present process of Macua抯 banking industry抯 clearance system and at the same time provide research in the aversion of these risks. This article will try to come up with strategy on the preventive measures on how to deal with them. Lastly, it will provide a comparison of the influence of the two major muti-national clearance systems,Continuous Linked Settlement (CLS) which still has not been introduced into Macau, and the one which is now in practice.