What Kind of Payments Settle in a Real Time Gross Settlement System?

Central bank settlement systems are vital for payment intermediation and have an important role in monetary policy and financial stability. Few analyses exist that explain the purpose behind the payments that are settled in these systems. In this paper we categorise payments that settle in Norges Bank's settlement system (NBO) based on their economic purpose. Interbank lending, FX trades, and payments by households and companies were the major contributors to turnover based on value and accounted for 22, 21, and 9 percent of the turnover in NBO respectively.