Atlanta Fed official discusses payment system changes.

Financial Update, July, 2005

Rapid changes in the payment system have become a worldwide phenomenon. In July, Atlanta Fed First Vice President Pat Barron discussed the globally evolving payment system at a conference in Santiago, Chile, hosted by the Chilean Superintendent of Banks and Financial Institutions and the Central Bank of Chile.

Barron began by pointing out that an interconnected payment system can transmit financial risks across institutions and markets. Central banks can limit such contagion by promoting safe and efficient payment systems, he said, citing a report by the Committee on Payment and Settlement Systems of the Bank for International Settlements.

Reckoning with market forces

Central bankers must adjust to market forces, he said, noting the Fed's...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.