Post by Sapphire Capital on Aug 26, 2008 20:31:16 GMT 4
Nonbanks and Risk in Retail Payments: EU and US
Terri Bradford
Federal Reserve Banks - Federal Reserve Bank of Kansas City
Fumiko Hayashi
Federal Reserve Bank of Kansas City
Christian Hung
Federal Reserve Banks - Federal Reserve Bank of Kansas City
Simonetta Rosati
European Central Bank (ECB)
Richard J. Sullivan
Federal Reserve Bank of Kansas City
Zhu Wang
Federal Reserve Bank of Kansas City
Stuart E. Weiner
Federal Reserve Banks - Federal Reserve Bank of Kansas City
June 1, 2008
Abstract:
This paper documents the importance of nonbanks in retail payments in the United States and in 15 European countries and analyses the implications of the importance and multiple roles played by nonbanks on retail payment risks. Nonbanks play multiple roles along the entire payment processing chain. They are prominent in the United States and their presence is high and growing in Europe as well, although there are differences among the various countries and payments classes. Nonbanks' presence has shifted the locus of risks in retail payments towards greater relevance of operational and fraud risk. The paper reviews the main safeguards in place, and concludes that there may be a need to reconsider some of them in view of the growing role of nonbanks and of the global reach of risks in the electronic era.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1201882_code208055.pdf?abstractid=1201882&mirid=1
Terri Bradford
Federal Reserve Banks - Federal Reserve Bank of Kansas City
Fumiko Hayashi
Federal Reserve Bank of Kansas City
Christian Hung
Federal Reserve Banks - Federal Reserve Bank of Kansas City
Simonetta Rosati
European Central Bank (ECB)
Richard J. Sullivan
Federal Reserve Bank of Kansas City
Zhu Wang
Federal Reserve Bank of Kansas City
Stuart E. Weiner
Federal Reserve Banks - Federal Reserve Bank of Kansas City
June 1, 2008
Abstract:
This paper documents the importance of nonbanks in retail payments in the United States and in 15 European countries and analyses the implications of the importance and multiple roles played by nonbanks on retail payment risks. Nonbanks play multiple roles along the entire payment processing chain. They are prominent in the United States and their presence is high and growing in Europe as well, although there are differences among the various countries and payments classes. Nonbanks' presence has shifted the locus of risks in retail payments towards greater relevance of operational and fraud risk. The paper reviews the main safeguards in place, and concludes that there may be a need to reconsider some of them in view of the growing role of nonbanks and of the global reach of risks in the electronic era.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1201882_code208055.pdf?abstractid=1201882&mirid=1