Payment-systems-and-settlements

Economic growth and prosperity hinge on the smooth operation of the financial system and the reliability of payment systems.

Bank of Greece’s responsibilities, as a national central bank of the Eurosystem, include the smooth, secure and reliable operation of payment market infrastructures and financial instruments, since these are crucial for the implementation of monetary policy and the maintenance of financial stability.

In this context, Bank of Greece, as a national central bank, may, among other things:

provide payment and securities settlement infrastructures;
oversee payment systems and means of payment, as well as clearing systems, thus minimising any potential systemic risk; and
coordinate with all interested parties for the harmonisation of financial markets across Europe.

Payments systems are funds transfer systems governed by official standardised procedures and common rules for the processing, netting and/or settlement of funds transfer orders between the system participants for their own account and/or on behalf of their customers. The main participants are the financial institutions that provide payment accounts, instruments and services to their customers (consumers, enterprises, public entities) and ancillary (e.g. retail, securities, etc.) systems.

Settlement systems are the systems used for the transfer of securities between the accounts of participants. Participants are credit institutions, securities companies, settlement systems and other market participants.

Payment and settlement systems are governed by a robust legal framework, regulations and standardised procedures that are imposed by law, the system administrators, supervisors or the central bank of each country.

Greece’s payment and securities settlement systems

Large-value payment system (TARGET-GR)

Bank of Greece is the operator of TARGET-GR, which consists the Greek component of the large-value real-time gross settlement system TARGET.

Retail payment systems

Interbanking Systems S.A. (DIAS S.A.): A private, multilateral retail payment netting system.
Athens Clearing Office (ACO): a multilateral cheque clearing system operating at the premises and staffed with personnel of the Bank of Greece.

Securities settlement systems

System for Monitoring Transactions in Book-entry Securities (BOGS): a government securities settlement system located on the premises of, and managed by, Bank of Greece.
Securities settlement systems of the Athens Exchange: units of Hellenic Exchanges S.A. which perform clearing and settlement of the transactions carried out on the securities and derivatives markets of the Athens Exchange.