The Bank of England has developed a risk-based methodology to support its oversight of payment systems. The methodology provides more precise estimates of risks in payment systems than previously available. Because it is consistent and systematic in its application, the methodology assists the...

During the past two decades, Large Value Payment Systems (LVPSs) in many countries have been redesigned so that the payments they process are settled on a ‘Real-Time Gross Settlement' (RTGS) basis. Such systems eliminate interbank credit risk in the payment system - which, from the perspective...