Payments systems

Among its tasks, it shall be incumbent on Banco de Portugal to ensure economic agents efficient, time-critical and secure payment systems.

The overall utilisation of payment instruments based on demand deposits has led central banks to provide to commercial banks payment systems similar to those provided to their customers. Indeed, interbank and securities settlements are carried out by means of current accounts held by credit institutions with Banco de Portugal. These accounts make it possible to finalise payments and settlements between financial institutions.

The large development of cashless payments (bank transfers, cheques, credit cards, debit cards and other electronic means of payment) and the globalisation of the financial markets have led clearing operations to also require more automation, in order to increase the efficiency and security of their processing.

Banco de Portugal has fostered and closely monitored payment system automation, in particular retail systems, within the scope of the Interbank Clearing System (Portuguese acronym: SICOI). It covers cashless payment instruments such as cheques, bills of exchange, Interbank Electronic Transfers (Portuguese acronym: TEI), direct debits and ATMs. The payment system in Portugal has reached a development level that, from a technological perspective and in view of the services made available, may be considered among the most advanced at European level.
 
As regards large-value interbank payments, the SPGT – the Portuguese large-value payment system – entered into operation in 1996. This system jointly with the corresponding systems in European Union (EU) countries and in the European Central Bank have formed the European interbank transfer system, TARGET, which was launched in 1999. Its main purpose is to conduct operations related to the single monetary policy and cross-border transfers between institutions of EU Member States. Meanwhile, SPGT2-PT has migrated to the new TARGET2, in operation since 18 February 2008.
 
Banco de Portugal, pursuant to the mission entrusted to it by Article 14 of its Organic Law, is committed to implementing and disseminating the policies laid down in the document entitled "Role of the Eurosystem in the field of payment systems oversight", published by the ECB on 21 June 2000, and also to adopting the “Core principles for systemically important payment systems”, approved by the Committee on Payment and Settlement Systems (CPSS) of the Governors of the Central Banks of the G-10 and adopted by the Eurosystem in January 2001.
 
Banco de Portugal has published its tasks and policy principles regarding payment systems in Chapter III.4 of its Annual Report 2000.
 
The assessment of the payment systems processing large value (in Portugal the SPGT/TARGET system) and retail payments (in Portugal the SICOI), within the scope of the “Core principles”, is available in the Assessments.