Business continuity of settlement systems

One of the key elements of ensuring the stability of the financial system is to secure the business continuity of the financial system infrastructure - settlement systems.

The objective of managing the business continuity of settlement systems is to ensure the uninterrupted functioning of critical settlement systems so that the impact of a contingency situation on the financial system would be minimal. Critical settlement system is TARGET2-Eesti. The objective of business continuity is achieved by preventive and contingency measures taken in emergency situations.

The exchange of information at an international level is extremely important due to cross-border financial system integration. Thus, the European System of Central Banks aims at providing relevant and explicit information on business continuity frameworks based on international standards and the domestic requirements and practices of EU Member States (for further information, see the web site of the ECB).

International standards ensuring the business continuity of settlement systems:

    High-level principles for business continuity, 2006, (Basel Committee on Banking Supervision, BIS)

    Business continuity oversight expectations for systemically important payment systems (SIPS), 2006 (European Central Bank)

    ESCB definitions of major business continuity terms in relation to payment and securities settlement systems, 2007, (European Central Bank)

Legislation on the business continuity of settlement systems valid in Estonia:

    Legal framework of the interbank settlement systems

    Requirements regarding the arrangement of operational risk management, 2005 (Financial Supervision Authority)

    Requirements for Organising the Business Continuity Process of Supervised Entities, 2006 (Financial Supervision Authority)