'International Center for Promotion of Enterprises'
Abstract
The payment systems have significant role in each economy. Large-value payment systems (LVPS) are essential part of financial market and represent its infrastructure. In this paper we tried to determine the impact of systemic risk in their functionality using the analysis of indicators for measuring the level of its development. As a basis for analysis we used methodology developed by Cirasino and Garcia (2008), representatives of Payment Systems Development Group (World Bank). In the first part each segment of LVPS indicator is analysed in order to establish connection between systemic risks and the level of LVPS development. The second part of paper contains empirical research for Serbia, Croatia, Bosnia and Herzegovina, Montenegro, Macedonia and Slovenia, because their payment systems share the same heritage. Cirasino and Garcia published their ranks, but we did detailed calculation within all criteria. This calculation provided deeper insight in the risk management of those countries. At the end of the paper the conclusion is given that there is a high dependence between LVPS development and systemic risk management. We also conclude that WB countries and Slovenia has solid systemic risk management in their LVPS
