Which systems are subject to licensing and supervision?

Licensing is required for interbank systems that are important to financial stability. Norges Bank assesses whether a system is important to financial stability on the basis of the following:

• Turnover in the system
• Risk factors in the system
• Number of participants in the system and links to other systems
• Exposures and participants' financial position
• The importance of the system in society

Two market participants are currently licensed to operate interbank systems: DnB Bank ASA and the NICS Operations Office. Norges Bank’s Settlement System (NBO) is not subject to the Payment Systems Act. The operation and development of NBO are nevertheless based on international recommendations for the organisation of payment systems.

What are the requirements for licensed systems?

General requirements regarding interbank systems are laid down in the Payment Systems Act, but Norges Bank may set more detailed requirements for the systems. These requirements will be based on an assessment of the risk factors in the individual system. Systems that have been licensed must report to Norges Bank on turnover, exposures, deviations, contingency exercises etc.

For further information about licensing and supervision of interbank systems, please refer to the following:

• Payment Systems Act
• Reporting requirements for licensed interbank systems and NBO
• Payment systems – a potential source of risk. The need for oversight and supervision. Harald Haare and Inger-Johanne Sletner (Economic Bulletin 3/2007)
• Core Principles for Systemically Important Payment Systems. BIS. Committee on Payment and Settlement Systems (CPSS Publications No. 43)

See also the report Principles for financial market infrastructures - consultative report (CPSS Publications No 94)