See also:

• Single Euro Payments Area, (SEPA)

Payment and settlement systems

In today's economic and financial environment, the efficiency and reliability of the financial sector depends on the smooth and sustainable operation of payment and settlement systems. For the central bank, the efficient operation of payment and settlement systems is essential for:

   conducting successful monetary policy;

   guaranteeing the stability of the economic and financial system;

   arranging the smooth functioning of currency circulation.

Pursuant to internationally acknowledged standards (read more from the international standards and good practices on the operation of payment and settlement systems), the Treaty Establishing the European Community, the Eesti Pank Act, the Credit Institutions Act and the Eesti Pank Governor's decrees enacted based on these legal acts, Eesti Pank fulfils three key roles in connection with settlement systems:
Eesti Pank fulfils three different roles in connection with settlement systems:

 

   Operator of settlement systems - Eesti Pank is the service provider and owner of the inter-bank payment settlement systems it manages (read more: settlement systems of Eesti Pank);

   Regulator of settlement systems - Eesti Pank enforces the legal acts regarding the settlement systems for interbank payments (read more: settlement system regulations);

   Overseer of settlement systems - Eesti Pank assesses and guides the operation and development of settlement systems (read more: oversight of settlement systems).

These functions are mainly fulfilled by the Eesti Pank's Payment and Settlement Systems Department, which also participates in the development of the financial sector's infrastructures and in the design and implementation of their policies and legal framework. Eesti Pank facilitates and coordinates the development of settlement systems, above all, through the Estonian Council of Payment System Experts (EMEN) and the TARGET2-Securities Estonian National User Group. If necessary, Eesti Pank also cooperates and shares information with the Estonian Ministry of Finance and the Financial Supervision Authority pursuant to the cooperation agreement concluded in 2007. To implement the Single Euro Payments Area (SEPA) in Estonia, Eesti Pank participates in discussions and working groups that are managed by the Banking Association.

The business continuity of Eesti Pank's payment and settlement systems is guaranteed by the Operations and Back-Office Division of the Payment and Settlement Systems Department. Oversight is the responsibility of the Policy and Oversight Division of the Payment and Settlement Systems Department. The independence of the settlement systems' oversight is guaranteed and the conflict of interests within the Payment and Settlement Systems Department is minimised pursuant to the procedure and rules provided in the Eesti Pank's internal documentation. According to these rules and procedures, the Policy and Oversight Division is directly responsible to the Executive Board of Eesti Pank, independently of the role and interests of the Payment and Settlement Systems Department as the operator of payment and settlement systems. The Legal Department provides the legislation on payment and settlement systems, with the required support provided by the Payment and Settlement Systems Department.