The Association of Banks in Fiji (ABIF) operates a clearinghouse facility for its members, which is located at the main branch of Australia and New Zealand Banking Group Limited (ANZ) in Suva. The members’ meet twice daily at the venue to exchange cheques and then settle their obligations through accounts held at the Reserve Bank of Fiji (RBF).
This policy statement notice, as part of implementation of the action plan for modernising the payment system in Fiji, formalises the operations of the clearinghouse by establishing the terms and conditions applicable to the use of this service and provides a legal foundation for it in conformity with the requirements of international standards. The policy statement is aimed at seeking compliance with Core Principles IV and V of the Core Principles for Systemically Important Payment Systems issued by the Bank for International Settlements.
The policy outlines the general tone of current arrangements and describes clearinghouse activities, including the names of participants. It provides qualifications and procedures for adding new participants over time and designates the RBF as the net settlement agent. Distinct sections describe the duties and responsibilities of collecting banks and paying banks in the conduct of the business of exchanges and settlements. Further, the role of the RBF for effecting settlements is also described in the statement. Issues with regard to safety and soundness of the financial system, protection of the rights and obligations of parties are also contained in the policy statement. The policy notice has a definition section, which provides definitions for the unique terminology that has been used.
The notice has been issued to all commercial banks as the members of the Clearinghouse and took effect from 1 July 2002.
» Payments System Policy Statement No.1