Upon completion of this program, participants will be able to:

• Explain the mandate and objectives of central bank payments system oversight and its legal basis.
• Apply the **CPMI-IOSCO Principles for FMIs (PFMIs)** to assess the safety of payment systems.
• Identify and evaluate credit, liquidity, and systemic risks inherent in various payment system models.
• Analyze the operational and cyber resilience requirements for critical payment infrastructure.
• Develop and implement effective surveillance and monitoring tools for real-time risk detection.
• Understand the legal framework for achieving finality and irrevocability of settlement.
• Assess the risks and regulatory challenges posed by new payment technologies (e.g., faster payments, DLT).
• Formulate a comprehensive risk management and policy strategy for a national payment system.

• Central Bank Payments System Oversight and Supervisory Analysts
• Financial Market Infrastructure (FMI) Risk and Compliance Officers
• Commercial Bank Operations and Risk Management Staff
• Government Policy Makers on Financial Regulation
• Internal Audit and Compliance Professionals specializing in Payments
• IT Security and Cyber Resilience Specialists for Finance

FMI risk assessment case studies (PFMIs focus), Development of payment system surveillance indicators, Group project on cyber resilience testing, Policy debates on DLT/Stablecoin oversight, Role-playing oversight examination interviews, Structured discussions on legal finality.

Unit 1: The Payments Oversight Mandate

• The core objectives of payments oversight: safety, efficiency, and integrity.
• Distinguishing between central bank oversight, supervision, and operation.
• Legal and statutory basis for central bank authority over payment systems.
• The concept of systemic importance and criteria for system designation.

• In-depth review of the **CPMI-IOSCO PFMIs** and their application to payment systems.
• The four types of risk covered by the PFMIs (credit, liquidity, settlement, operational, legal).
• Oversight of retail payment systems, card schemes, and other non-systemic payment arrangements.
• International cooperation and information sharing in cross-border oversight.

Unit 2: Risk Assessment and Management

• Assessing the credit risk of participants and the management of exposures in net systems.
• Evaluating the adequacy of liquidity risk management procedures (e.g., intraday credit collateral).
• The role of the central bank as the ultimate liquidity provider.
• Modeling the systemic risk of interconnected payment systems.

• Assessing the operational resilience and business continuity plans of system operators.
• Advanced cyber risk and cyber resilience assessment methodologies.
• Evaluating the legal framework for finality, netting, and default management enforceability.
• Risk management for third-party service providers (e.g., messaging and network providers).

Unit 3: Surveillance and Intervention

• Developing and utilizing real-time surveillance tools (e.g., EWS) for payment flows.
• Techniques for monitoring liquidity usage, queueing, and failure-to-settle rates.
• Using network analysis to identify concentration risk and critical participants.
• Reporting and escalation protocols for emerging risk signals.

• The range of oversight tools: self-assessment, examination, rule amendment, and formal intervention.
• The process of granting and revoking system authorization and participation.
• Policy on risk disclosure and transparency requirements for system operators.
• Crisis management coordination during a major system disruption or participant failure.

Unit 4: Technology and Future Challenges

• Regulatory approach to Faster Payments and instant payment schemes.
• Assessing the risks of Distributed Ledger Technology (DLT) in payments.
• Oversight of stablecoins and Central Bank Digital Currency (CBDC) proposals.
• Challenges in regulating BigTech and non-traditional payment providers.