Payment System Risks And Management In China

Payment systems are financial arrangements by which funds are transferred from one side to another side, which consist of rules of funds transfer, organizations supplying payment service and means of payment orders transfer and funds settlement. Payment systems are, therefore a key part of financial infrastructure and a core means of financial service.Safe and efficient payment systems are critical to the financial stability, economic development and social safety. Central bank should be responsible for the payment systems risk management and maintaining financial stability, supplying effective and safe funds transport channel because it is on the special position.Payment system is up against political risk, legal risk, credit risk, liquidity risk, running risk and moral risk.The Committee on Payment and Settlement System of The Bank for International Settlement has published Core Principles for Systemically Important Payment Systems. There are ten basic principles of payment system designing and running, and the central bank responsibility. The Federal Reserve Bank, The European Central Bank and City Bank have practiced on the payment system risk management. We can use their experiences.In china, there are many problems in the payment system risk management. At first central bank should establish payment system risk management programs which contain risk recognizing and analysis, risk management strategy selection and risk management strategy implement. Central bank should also do lot of thing, such as pay more attention on study payment system theory, cooperate with the financial department, establish legal system, establish internal control system, consummate risk management organization system and step out the construction of our payment system, establish technical maintain mechanism, running safeguard mechanism and emergency handle mechanism.