Cross-border electronic funds tranfers through large value transfer systems, and the persistence of risk

Examines the international progress towards regulatory harmonisation of cross border electronic funds transfers and the obstacles that still remain. Comments on: (1) the nature of such transactions and the varieties of payment systems involved; (2) elements of the banker-customer relationship in fund transfers; (3) the risks involved in payment finality and settlement finality, including the liquidity and credit risks associated with Real Time Gross Settlement (RTGS) systems; (4) the need to ensure the legal validity of netting in all jurisdictions; (5) key EC initiatives concerning large value payment systems; and (6) possible future developments.