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Oversight is a function of Eesti Pank under the Eesti Pank Act. In its oversight, Eesti Pank analyses the construction and functioning of payment and settlement systems, identifies risks to the systems, recommends ways to minimise risks, and monitors compliance with those recommendations. Oversight by the central bank helps support the architecture and functioning of payment and settlement systems. Eesti Pank bases its oversight work on the framework for oversight of payment and settlement systems.

The priority for Eesti Pank is to oversee the domestic systemically important payment and settlement systems, for which Eesti Pank has the sole oversight responsibility. Eesti Pank also oversees other important payment and settlement systems and participates in the cooperative oversight work of the Eurosystem. In overseeing payment and settlement systems, Eesti Pank uses the principles of systemic importance and risk. It oversees those systems that have an impact on financial stability, monetary policy and the smooth circulation of currency.

Oversight scope

Eesti Pank oversees:

Eesti Pank also assesses the rules and principles for payment systems being set up by payment institutions and participates in the cooperative oversight work of the Eurosystem.

Oversight of the payment and settlement systems is independent. Eesti Pank works together in its oversight with Finantsinspektsioon and the central banks and financial supervisors of Latvia and Lithuania.

Oversight requirements and assessment. Eesti Pank uses the international CPMI-IOSCO principles for financial market infrastructure adopted by the Eurosystem for assessing oversight risks.

Oversight assessment. Eesti Pank gives a general assessment of the functioning of the payment and settlement systems it oversees twice a year, and also assesses how the systems meet the oversight requirements for risk minimisation at least once every three years. The results of both the general assessment and the compliance with the requirements are published in a generalised form in the Eesti Pank Financial Stability Review.