Questions and Answers
The National Bank of Ethiopia has the objective of guaranteeing ______ and efficiency in the payment system.
safety
The primary focus of oversight of ______ system shall be on functions or systems and not on institutions.
payment
The overseer aims to protect ______ interest through promoting competition in the payment service market.
consumer
The scope of oversight function applies to all ______, clearing and settlement systems in the country.
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The national ______ system plays crucial role in facilitating economic transactions and helps to ensure effective transmission of monetary policies.
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The Payment and Settlement Systems Directorate is responsible to undertake the following major functions, including leading and overseeing the national ______ system.
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The Payment and Settlement Systems Directorate is organized into three units, namely: ______ oversight, payment and settlement operations, and banking operations.
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The Payment and Settlement Systems Directorate maintains ______ denominated current accounts of government organizations, banks, insurance companies, and microfinance institutions.
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The Payment and Settlement Systems Directorate provides effective and efficient ______ and payment services to account holders.
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The Ethiopian ______ Transfer System is a low value bulk payment system operated by the Payment and Settlement Systems Directorate.
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Study Notes
• Payment and Settlement Systems Directorate is responsible for leading and overseeing the national payment system, managing and operating the interbank large value and low value bulk payment system, maintaining Birr denominated current accounts of government organizations, banks, insurance companies, and microfinance institutions, and providing effective and efficient banking and payment services to account holders.
• The directorate is organized into three units: payment system oversight, payment and settlement operations, and banking operations, based on the principles of segregating the oversight and operation of the payment system function.
• The national payment system plays a crucial role in facilitating economic transactions and ensures effective transmission of monetary policies, and the National Bank of Ethiopia has the objective of guaranteeing safety and efficiency in the payment system thereby to ensure stability of the financial system.
• The National Bank of Ethiopia recognizes its roles in the payment systems, including facilitating payment transactions, managing and operating large as well as retail payment systems, overseeing the whole national payment system, and acting as a catalyst for the development of an efficient and safe payment system.
• The general policy of Payment System Oversight includes ensuring robust payment systems to maintain and promote financial system stability, managing national payment system risks and costs, focusing on functions or systems rather than institutions, following international standards and principles, and overseeing large value as well as retail payment systems and services.
• The primary objectives of Payment System Oversight include ensuring safety and efficiency, inclusiveness, fairness, transparency, effective governance, competitiveness, consumer protection, and financial literacy in the payment system.
• The scope of the oversight function applies to all payment, clearing, and settlement systems in the country and payment instruments handled in the systems, including large value payment systems, retail payment systems, payment instruments, and payment services.
