Research On Risk Management Of Payment And Clearing System In Guangxi

Payment and clearing system consist of rules for fund transfer,institutions which provide clearing service and means to implement transmission of payment instruction and fund clearing,together the system is used to realize transmission of financial payment instructions in order to repay debts or funds transfer.A stable,secure and effective payment and clearing system is important for smoothing mechanism of monetary policy,accelerating social capital turnover,optimizing distribution of social resources,maintaining financial stability and promoting economic growth.However,payment and clearing system often involve payment instructions for debt repayments between banking institutions,which are of great amount and high risk,the system lack of effective risk management can cause critical incident which leads to magnificent negative impact on financial system and the real economic.Nowadays,in the environment of sustained and rapid socioeconomic development,deepen of financial reformation,expansion of financial market and revolutions on payment methods,risks within payment and clearing system has become increasingly highlighted while the system develops.Therefore,research on risk management of payment and clearing system will help assuring the system to run safely,stable and effectively by preventing and resolving systematic risks.According to the international Principles for Financial Market Infrastructures,risks are classified as legal risks,credit risks,liquidity risks,general business risks,operation risks and systematic risks.The paper attempt to apply Principles for Financial Market Infrastructures to risk management of Guangxi's payment and clearing system,point out current issues within risk management of the system by comprehensive analysis of the system.What is more,the paper aim to put forward suggestions for related risk management by combining advanced experience from other provinces' payment and clearing systems,so that the regulatory functions of grass-roots level central banks can be strengthen and provide reference for enhancing payment and clearing system's risk management within the jurisdiction.