2014 Assessment of the Reserve Bank Information and Transfer System 2. Summary and Review of Ratings and Recommendations

This Section summarises actions taken by the Bank in 2014 in relation to the commitments identified in the 2013 Assessment, as well as recommendations arising from the 2014 Assessment of RITS against the Principles.

2.1 Progress against 2013 commitments

In the 2013 Assessment RITS was found to have observed all relevant Principles. The Bank nevertheless committed to actions in a number of areas to ensure that RITS's operations continued to meet international best practice. The following table summarises the actions identified in the 2013 Assessment, and progress by the Bank in the Assessment period towards completing these actions.

2.2 2014 ratings and recommendations

The following table summarises the 2014 Assessment of RITS against the Principles.^[5] In its Assessment, Payments Policy Department have applied the approach and rating system set out in the Disclosure Framework. Under this rating system, a facility's observance of a standard may be rated as:

Observed – Any identified gaps and shortcomings are not issues of concern and are minor, manageable and of a nature that the facility could consider taking them up in the normal course of its business.

Broadly observed – The assessment has identified one or more issues of concern that the facility should address and follow up on in a defined timeline.

Partly observed – The assessment has identified one or more issues of concern that could become serious if not addressed promptly. The facility should accord a high priority to addressing these issues.

Not observed – The assessment has identified one or more serious issues of concern that warrant immediate action. Therefore, the facility should accord the highest priority to addressing these issues.

Not applicable – The standard does not apply to the type of facility being assessed because of the particular legal, institutional, structural or other characteristics of the facility.

RITS was found to observe all relevant Principles. The Bank nevertheless has governance arrangements in place to motivate and encourage continuous improvement in RITS. Reflecting existing plans and matters identified in the Assessment, Table 1 sets out recommendations in some specific areas. The recommendations in the table are discussed in more detail in Section 3 and in Appendix B.

Footnote

The Principles for Financial Market Infrastructures, developed jointly by CPMI and IOSCO, are available at <http://www.bis.org/publ/CPMI101a.pdf>. [5]