prudent regulation. institutional arrangement on the payment service market and supervision over market behaviors requires further clarification and coordination. third, increasingly more cross - border financial activities set high demands for an efficient functioning of and supervision on the payment & settlement system. economic globalization has caused increased cross - border financial activities, which requires more multi - currency cross - border payments, so the traditional payment system focusing on providing settlement services for domestic financial institutions have evolved along such changes, for example the upgrading of european cross - border payment system ( target ), multi - currency foreign exchange trading settlement services provided by the cls, the settlement arrangement for us dollar and the euro in hong kong market etc. in particular, the foreign exchange payment system of hong kong did not settle in central bank money but realized realtime ultimate settlement through commercial banks ’ accounts based on clear settlement rules, which has great significance to the settlement arrangement in mainland financial market. fourth is relevant to the coordinated development between large - value payment system and the securities settlement system. the latest research of the bis concluded that, the large - value payment system of a country should develop harmoniously with the securities settlement system to ensure safety and efficiency of a financial system. one important reason behind it stems from the interdependent relations between the large - value payment system and the securities settlement system. specifically, capital settlement in a securities system could realize dvp through the largevalue payment system so as to prevent payment risks. at the same time, the large - value payment system provides liquidities for participants according to their pledges to reduce liquidity risks, which needs the support of securities system in return. turning to the current situation in china, the cbgs has built interface with the large - value payment system, while the securities settlement system of the stock exchange are under study for how to connect due to many factors. it is important to tackle the coordinated development between the large - value payment system and the securities settlement system. fifth, in order to promote the long and coordinated development of all components of a country ’ s payment system, some economies have established special payment and settlement development committees comprised of different members either all from the central banks, or from the central banks, relevant regulatory authorities and commercial institutions. the mode of establishing the payment & settlement system development committee could be explored to examine whether it is suitable to china ’ s practice. in short, the mainland needs to further improve the local currency payment system since we depend on telecommunication and computer network in

make greater efforts, by coordinating with provincial credit unions, to encourage rural credit unions to construct and restructure their network and operation system in order that all banks are able to connect to the verification system. during the transformation stage, those bank outlets that could not connect to the system can link to its superior offices or branch offices of the pbc to execute online verification. at the same time, the pbc will encourage banks to make practical program to replace character terminal and improve the number of personal computers in every banking outlet aiming at least one pc in every outlet. actively and steadily verify the existing bank accounts with the help of the online verification system. due to some reasons involving history and management, particularly because of having no effective measures to verify individual identification document, there are a small number of anonymous or fictitious accounts among existing personal accounts. for corporate bank accounts, a small number of corporate entities do not provide true information of their legal representatives. with a view to implementing the use of real names for bank accounts, the pbc will strictly observe relative policies and regulations and organize banks to carry out a comprehensive clean - up and verification to all corporate and personal bank accounts opened before the inauguration of the online verification system. the pbc will take steady and active steps to push forward such a program. stock corporate bank accounts will be cleaned up and verified first, followed by verification of the stock personal accounts based on relevant experiences obtained further implement the use of real names for bank accounts by taking effective measures. it is a long - term job and requires all related parties to make concerted efforts. recently, the pbc will improve the relative regulations on real name policy including defining types of valid documents that individuals could use to conduct banking business as well as the order of priority in presenting these documents, normalizing application procedures for opening a corporate bank account and its management agreement so as to clarify the basis of implementing the use of real names for corporate bank accounts, which provide policy basis covering a wider range of issues. at the same time, based on the cooperation with the mps, the pbc will strengthen cooperation with other ministries so that banks are able to verify enterprise code certificate or other credentials and provide more authority and effective measures to enable institutional customer ’ s identification in order to promote the comprehensive implementation of using real names for bank accounts.