The Bank of Israel today published the "Red Book" for 2010, which reports on developments in the payment and settlement systems

31.05.2011
 
The Bank of Israel today published the “Red Book” for 2010, which reports on developments in the payment and settlement systems
 
To view this press release as a WORD file - Click here
 
For the full document - Click here
 
The “Red Book” for 2010, which reports on developments in the payment and settlement systems in Israel, was published today on the Bank of Israel website. The information and data contained in the Red Book are important to both local and international financial entities, including the Bank of International Settlement (BIS) which receives information from Israel, as well as from other countries, and publishes it.
Israel’s first Red Book was written together with the BIS and was published in 2000. The Red Book for 2010 provides an up-to-date picture of the payment and settlement systems in Israel, as well as the main developments in the area since the previous issue. In addition, the Red Book presents statistics on the activity of the payment systems and the means of payment in Israel, in the format specified by the BIS.
As of 2010, about three years after the launch of the Zahav system (RTGS, Real Time Gross Settlement system which allows real time and final transfers), most large interbank payments are being settled directly in the Zahav system. Interbank settlements totaled NIS 8,166 billion. 67 percent of total interbank amount in all the payment systems were settled in the Zahav system, 23 percent in Masav (Automated Clearing House) and 10 percent in the Paper Based Clearing house.
During the year under review, total interbank amounts in the Zahav system grew by about 20 percent, the credits in Masav grew by about 16 percent and payments settled in the Paper based Clearing house (checks and manual instructions) grew by about 9 percent. As to the number of transactions, there was a significant increase of 37 percent in interbank transactions in the Zahav system and an increase of 6.1 percent in credits in Masav, while the growth in the Paper Based Clearing House was negligible at less than one-tenth of one percent.
In recent years, the Bank of Israel has advanced a comprehensive reform of the payment and settlement systems, which highlight was the launch of the Zahav system (an RTGS – Real Time Gross Settlement system) in July 2007. The reform included the following: changes introduced into the Stock Exchange Clearing houses, the Paper Based Clearing house and the Automated Clearing House (Masav); an extension of the banking business day until 6:30 pm; the establishment of computerized support systems; and the legislation of the Payment Systems Law–5768-2008. In addition, the shekel was added as a currency for settlement by the CLS Bank in May 2008, thus joining the major world currencies currently settled by the CLS and making it a convertible currency that is traded freely worldwide.
In late 2009, the Bank of Israel began working to oversee payment and settlement systems in Israel, in accordance with the Payment Systems Law. This is a complex process, which was assisted by the support and advice of the World Bank and which is planned to continue until 2012. The Bank of Israel’s overseeing of the payment systems is part of its function to ensure the stability of the financial system. The regulation consists primarily of identifying potential risks in the activity of the payment systems and the adoption of measures to neutralize or control those risks.