Eesti Pank is responsible for promoting a secure and efficiently functioning payments market, which covers payment and settlement systems and methods of payment. How the payments market functions is important for
- ensuring the stability of the economic and financial system,
- conducting monetary policy, and
- arranging the uninterrupted circulation of currency.
Eesti Pank promotes the payments market in three ways:
- Helping payment systems operate efficiently
Eesti Pank has the right to set up and manage payment systems. Eesti Pank is the owner and service provider of the TARGET2-Eesti payment system and participates in developing the securities settlement platform TARGET2-Securities.
- Overseeing payment systems
Eesti Pank oversees TARGET2-Eesti, the securities settlement system and the card payment system. As overseer the central bank monitors and assesses how well the systems comply with international standards, and makes recommendations to help the systems function safely and reliably.
- Participating in facilitating the payments market
Eesti Pank helps the functioning and development of the payments market, and participates in designing and implementing the policies and the legal framework that apply to it. The Estonian Payment Forum promotes the sustainable development of the payments market.
The Eesti Pank principles for promoting the payment market describe what Eesti Pank does to meet its responsibilities, outlining the principles that should be followed in this, and giving a list of the domestic and cross-border payment system working groups that Eesti Pank participates in.
- The payments marketThe payments market consists of payment and securities settlement systems and methods of payment.
- Payment and settlement systemsThe functioning of payment and settlement systems is important for maintaining the stability of the national economic and financial system, avoiding interruptions to the circulation of currency, and allowing monetary policy to be implemented smoothly.
- OversightAs overseer, Eesti Pank helps make sure that TARGET2-Eesti, the securities settlement system and the card payment system function securely and efficiently.
- Payment methodsGoods and services can be paid for in cash or by using non-cash payment options.
- SEPAThe Single Euro Payment Area allows electronic payments in euros to be made on the same terms throughout the European Economic Area
- The Estonian Payment ForumThe forum set up by Eesti Pank, the Estonian Banking Association and the Ministry of Finance supports the development of the Estonian payment market.
- LegislationThe legal framework that governs payments and securities settlement comes from European Union and Estonian legislation
- Continuous operation of banking servicesThe Emergency Act defines cash circulation and payment services as vital services. The Eesti Pank minimum requirement is that the four largest banks operating in Estonia should restore at least 70% of ordinary banking services within 12 hours at most following a breakdown.
- The development of settlement systems in EstoniaThe history and development of interbank settlement systems in Estonia