Financial System Develops New Methods for Securities Payment and Settlement

In a move to enhance the stability and efficiency of the financial system, the Bank of East Timor has been working on developing new methods and technologies for securities payment and settlement.

Enhancing Stability and Efficiency

According to sources within the bank, the institution is drafting a development plan for the growth of the national payment system. The plan aims to introduce new payment systems that will reduce transaction times and increase security.

Strengthening Supervisory Functions

The bank’s supervisory functions are also being strengthened to ensure the stability and integrity of the financial system. Under Article 31 of the country’s banking law, the Bank is responsible for regulating, licensing, registering, and supervising financial institutions. The institution has the power to inspect financial institutions’ facilities and examine their accounts, books, documents, and other records.

Statistical Data Collection and Information System

The bank is also working on collecting statistical data and information from financial institutions. Under Article 32 of the law, the bank is required to gather, compile, analyze, and publish statistical data and information for discharging its duties. The institution is defining regulations for the information and statistical data required, as well as confidentiality criteria and administrative sanctions in case of non-compliance.

Credit Information System

In addition, the bank is working on developing a credit information system that will provide accurate and timely information to financial institutions and other stakeholders. Under Article 35 of the law, the bank may operate, regulate, license, register, and supervise credit information systems to collect and disseminate credit information among financial and other institutions.

Role in Monetary, Financial, and Economic Policy

The Bank’s Governor will also be heard by the National Congress from time to time on matters involving monetary, financial, and economic policy.

Advice to Government

Furthermore, the bank is advising the Government within its sphere of duties and acts as the Government’s banker. Under Article 37 of the law, the bank may receive foreign loans and manage, administer, and settle the Government’s financial obligations and liabilities to external parties.

Depositary and Cash Services

The Bank’s relationship with the Government is also being strengthened through the depositary and cash services provided by the institution. Under Article 38 of the law, the bank accepts deposits in any currency from the Government or other public agencies and provides other financial services related to these deposits.

Conclusion

The development plan for the national payment system is expected to be completed soon, with the aim of introducing new payment systems that will benefit both individuals and businesses in East Timor.