2015 Assessment of the Reserve Bank Information and Transfer System 2. Summary and Review of Ratings and Recommendations
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This Section summarises actions taken by the Bank since the publication of the 2014 Assessment in relation to the recommendations made in that Assessment. It also lists the recommendations arising from the 2015 Assessment of RITS against the Principles.
2.1 Progress against 2014 Recommendations
In the 2014 Assessment, RITS was found to have observed all of the relevant Principles. Nonetheless, recommendations were made in a number of areas to ensure that RITS's operation continued to meet international best practice. Table 1 summarises the recommendations made in the 2014 Assessment, and progress by the Bank during the Assessment period towards addressing these recommendations.
2.2 2015 Ratings and Recommendations
The following table summarises the 2015 Assessment of RITS against the Principles.[3] In its Assessment, Payments Policy Department have applied the approach and rating system set out in the Disclosure Framework. Under this rating system, an FMI'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 FMI 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 FMI 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 FMI 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 FMI should accord the highest priority to addressing these issues.
Not applicable – The standard does not apply to the type of FMI being assessed because of the particular legal, institutional, structural or other characteristics of the FMI.
RITS was found to observe all of the 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 2 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>. [3]