Financial Stability Paper No. 6
By Ben Norman, Peter Brierley, Peter Gibbard, Andrew Mason and Andrew Meldrum
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 Bank in focusing its attention and resources — the intensity of oversight — where the level of risk is estimated to be greatest. This article provides an overview of the framework.