, and must lie with, the banks. self - regulation is still the rule. however, more complex systems and the potential of new participants increase the need for the public sector to take on partial responsibility. this is the background to the proposal for a new act on payment systems, which is under deliberation in the storting. according to the bill, norges bank is to be granted responsibility for licensing and supervision of interbank systems in norway. we wish to exercise this responsibility together with the industry and its participants. in the following, i will take a closer look at this interaction, how it may be developed and what our respective roles and responsibilities should be. i will also briefly touch on cls : continuous linked settlement. based on combined average daily turnover of about nok 175bn in nbo and total collateral of nok 37bn. vps : the norwegian central securities depository. our preparations for the new role as licensing authority, and provide a few opinions on which requirements must be placed on the interbank systems. 4. 1. the importance of self - regulation norges bank ’ s new licensing and supervisory responsibility will be a supplement to present - day self - regulation. up to the present, participants have cooperated on standards, rules and routines for security and transaction exchange within the payment system. agreements on obligations and responsibilities between the participants have assured coordination between banks. self - regulation has primarily taken place through and between the two banking associations. there is consensus that this model has given rise to substantial results, not least an infrastructure which safeguards important social considerations, while also providing for active competition between participants. the challenge for norges bank will be to fulfil its licensing and supervisory responsibility in such a way that self - regulation may be maintained, but which also allows us to move in the right direction in terms of both risk ( reduction ) and efficiency in the interbank systems. 4. 2. norges bank ’ s responsibility that norges bank has responsibility in connection with the payment system is not new to this bill. under the norges bank act, norges bank shall promote an efficient payment system domestically as well as vis - a - vis other countries. this formulation requires us to balance risk against efficiency. norges bank also serves as settlement bank for the banks. norges bank has, as a result of this function, set requirements on the banks and their clearing systems, with particular emphasis on risk - reducing measures. as a future licensing authority for

up to now for the payee bank to make funds available to its customer - pending the final transfer of funds from the payer bank in the settlement. this practice can lead to large and unforeseen exposure before settlement is finalised. if the payee bank postpones crediting instead, credit risk will be eliminated from the net settlement, but at the expense of efficiency - because the customers receive funds one ( or perhaps two ) days later. the advantages of delayed crediting must therefore be weighed against the disadvantages. my point here is that the banks themselves must be responsible for this assessment, while we at norges bank must evaluate whether the relevant measures are sufficient for promoting the objective of the law. let me add that licensing does not mean that norges bank has issued a stamp of approval for the technical solutions of the interbank systems. this is also emphasised in the preparations to the law, where it states that... the processing of licence applications does not mean that the authorities are responsible for the properties of the system ’ s operation, etc. it terms of the licensing process itself, norges bank has initiated preparations and we will be ready to receive licence applications when the law enters into force. at the same time, we are aware that the formulation of these applications will take some time, not to mention that any changes in agreements or routines ( which become necessary based on legal requirements ) may take even more time. however, we will endeavour to facilitate this process. we have already had informal contact with the banking associations concerning this matter and we are prepared to provide counsel and guidance in the further progress of this process. 4. 3. the responsibility of the banks the primary responsibility for the development of the payment system must, as mentioned, lie with the banks. this is in line with the approach of self - regulation. further development of the common infrastructure, agreements and new payment services must come from the industry itself. in this process, it is important that banks provide more information on risk in the systems, so that an explicit division of responsibilities can be established - both for the individual systems operator and for the participants in the payment systems. however, the banks ’ ability to develop efficient and stable payment services is influenced by the regulatory framework established by the authorities. norges bank can be of assistance in helping the industry to make the “ proper ” choices by providing a regulatory framework which maintains competition, while also encouraging that participants are faced with relative prices reflecting the real costs of