Results

In practice, the Bank supports payment system reforms in several ways that can be summarized as follows:
 • Supporting comprehensive initiatives (Algeria, Angola, Azerbaijan, Bahamas, Barbados, BCEAO, BCEAC, China, Ecuador, Tanzania, Trinidad and Tobago, Uzbekistan, Venezuela, Vietnam, West Bank Gaza, etc.).
 • Undertaking initial diagnostics and developing reform strategies (Costa Rica, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, India, Indonesia, Jamaica, Libya, Madagascar, Morocco, OECS, Poland, Thailand, Tunisia, etc.)
 • Providing specific technical advice (Brazil, Chile, Colombia, Estonia, Hong Kong, Netherlands Antilles, Peru, Russia, Ukraine, Mongolia, Moldova, etc.)
 • Coordinating and managing multi-country and regional initiatives: BCEAO Central Bank of West Africa, BCEAC Central Bank of Central Africa, Southern African Development Community (SADC), Western Hemisphere Initiative (WHI), Commonwealth of Independent States Initiative, Arab Initiative
 • Supporting the launch of cooperative arrangements (e.g. Payments Councils).
 • Organizing training activities.
 • Preparing support and educational materials including study methodologies.
 • Conducting Research in innovative areas (e.g. Oversight).
 • Preparing and publishing case studies.  Participating in CPSS and IOSCO Task Force(s) and other influential bodies.  Supporting the Financial Sector Assessment Program (FSAP) and developing its methodology for assessments of payments and securities settlement systems.
 • Coordinating reform efforts with other areas in the financial sector network (e.g. credit reporting, access to financial services, capital markets).

In particular, the regional approach has proven to be very effective as countries often face similar challenges in developing and modernizing their financial sector infrastructure. The ability to share experiences, problems and solutions across countries can strengthen (and accelerate, through peer pressure) the policies that each nation adopts and reduce the time and cost of modernization.

By working together, countries may also identify areas where harmonizing policies would be beneficial. The WB has taken this approach on payments and securities settlement systems, first through the Western Hemisphere Payments and Securities Clearance and Settlement Initiative (WHI) launched in winter 1999 and later through Commonwealth of Independent States Payments and Securities Settlement Initiative (CIS) launched in fall 2004 and the Arab Region Payments and Securities Settlement Initiative (API) launched in fall 2005. New initiatives of this kind are being launched in South Asia (South Asia Payments and Securities Settlement Initiative-API) and Africa (Africa Payments and Remittances Initiative - APRI).

In sum, payment system reform is a continuous process and the Bank is well positioned to support client countries in this effort. In the past, Bank staff at all levels have been able to identify reform opportunities by referring to some fundamental questions listed below and engaging Bank payment system experts in the follow up:
 • Do the present arrangements satisfy the needs of all market sectors for making payments?
 • Do the systems adequately cover the entire country?
 • Do special procedures exist for processing large value payments?
 • Are payments cleared and settled sufficiently quickly?
 • Are the range of available instruments sufficient to satisfy the differing needs of the users?
 • Are the systems convenient and easy to use from a user’s perspective?
 • Are the systems reliable and always available for use?
 • Are the systems safe and secure?
 • Is the legal underpinning for payments reliable under all circumstances?
 • Do the systems satisfy international minimum standards?