Criteria for Systemically Important Payment Systems in the Kingdom of Saudi Arabia

Criteria for Systemically Important Payment Systems in the Kingdom of Saudi Arabia Rabi' al-Thani 1436 AH

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As the sole owner, operator, and regulatory authority for payment systems in the Kingdom, the Saudi Central Bank (SAMA) is responsible for ensuring the safety and soundness of these systems. This responsibility includes a core function: identifying payment systems that are systemically important, facilitate the operation of financial infrastructure, and meet economic needs. "Systemically Important Payment Systems" are defined as those whose disruption could hinder participants or cause systemic failure in the Kingdom's financial infrastructure. As part of its supervisory mandate, the Authority has established a set of criteria to classify these systems as systemically important. The Authority has determined that any system meeting any of the following criteria shall be classified as systemically important:

1. Any system handling interbank payments or customer payments that may pose risks to financial stability.
2. The primary payment system in terms of total daily volume and value of payments.
3. Any system used for settlement in another financial infrastructure that is systemically important.
4. Any central payment infrastructure system that enjoys customer trust based on the number, type, and depth of participants in the market, and the absence of alternatives. In this regard, the Authority has classified the following systems as systemically important in the Kingdom:
5. Saudi Quick Transfer System (Sariq): A real-time gross settlement system for payments.
6. Saudi Payment Network (SAPN): An automated teller machine (ATM) and electronic payment at point of sale (POS) services system.
7. Sadad Payment System: An electronic invoice presentation and payment system.