Payment, clearing and settlement systems are very important to the economy for the following reasons:
The Central Bank of Cyprus Laws of 2002-2016, provide that one of the main tasks of the Bank is the promotion, regulation and oversight of the smooth operation of payment, clearing and/or settlement systems (Section 6(2)(g)). Section 48 further expands on the role of the Bank by providing that the Bank may manage, participate in, or become a member of any payment, clearing and/or settlement system. The Bank may place under its oversight such systems operating in the Republic. Section 48 also empowers the Bank to issue directives governing the functions and the operating procedures of systems under its oversight. Furthermore, it may impose administrative penalties on any member or manager of a system, or suspend the operation of a system, or terminate the participation of any member in any system under its oversight.
The payment, clearing and settlement systems in operation in Cyprus are described in detail as at the time of publication, including statistical data, in the relevant chapter of the European Central Bank publication "Payment and securities settlement systems in the EU", August 2007. This publication can be accessed via the following links:
Euro area countries : http://www.ecb.europa.eu/pub/pdf/other/ecbbluebookea200708en.pdf
Non-euro area countries: http://www.ecb.europa.eu/pub/pdf/other/ecbbluebooknea200708en.pdf