The West African Institute for Financial and Economic Management (WAIFEM) has embarked on a week-long training exercise, aimed at giving participants an appreciable understanding of payments systems in general and capital market development, including policy and risk issues. It will also provide participants with an understanding of Real Time Gross Settlement (RTGS).
The broad themes in the course to be covered, accordingly, include structures of the payment system which involves the legal and regulatory for the payment and settlement system, authorization of payment product services, transaction flows, consumer protection scheme risk and mitigation measure, oversight of the payment system, risk-based supervision of the payment system, determination of significant payment system, determination of significant payment system activities, inherent risks, risk management system, money transfer system, money transfer process flows, payment systems aspect of financial inclusion, payment and the role of the committee on payment and market infrastructures, financial inclusion efforts from payment perspectives, barriers to transaction accounts assets and use, interrelation of foundations catalytic pillars and effective use are also new skills participants will be benefitting from during the one-week interaction, according to Dr. Baba Y. Musa, Director General, WAIFEM.
The one-week course offered by WAIFEM, Musa noted, is widely recognized as an important part of the financial infrastructure of modern economy. At the retail level, he explained in a prepared speech payment and settlement systems involve the use of cash or bank deposits in settlement of transactions between individuals, families and business firms.
However, Musa asserted, at the whole sale level, large transaction between banks, business firms and agencies of government typically pass through automated clearing houses, noting that at both levels payment systems have undergone tremendous reforms with increasing use of smart cards and the introduction of Real Time Gross Settlement (RTGS).
“It is my honor and privilege to welcome you on behalf of the West African Institute for Financial and Economic Management (WAIFEM) to the opening ceremony of the regional course on payment systems and capital market development. Let me start by expressing our gratitude to Mr. J. Aloysius Tarlue, Executive Governor, and management of the Central Bank of Liberia for the warm welcome we have received since our arrival in this lovely city,” Musa welcomed participants in his opening remarks.
WAIFEM was established in 1996 by the Central Banks of the Gambia, Ghana, Liberia, Nigeria and Sierra Leone. The mandate of the institution is to build on a sustainable basis capacity for improved economic and financial management in the countries of its member central banks.
The institution has since its establishment been involved with capacity building initiatives as well as strengthening measures of financial transactions and management.
Liberia, as host country to the week-long activities, was represented by Central Bank Governor, J. Aloysius Tarlue, who also remarked in a prepared text read by a proxy who averred that the payment component of the financial system in a modern economy is vital to the development of interbank money markets and security markets. He said it enables the smooth interaction of all the operators in the conduct of economic activities. Thus it has a role to play in economic growth and development. For these and other reasons the safety and operational efficiency of the payment system is of concern to both market participants and public officials, notably central bankers.
“There is a direct link between the payment system and the implementation of monetary policy because of the influence of payment system operations on the public use of the money stock. The payment system links economic activity and money.