Annual Report on Payment Systems 2011

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Annual Report on Payment Systems 2011

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Part one

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0 2 4 6 8 10 12 14

01 02 03 04 05 06 07 08 09 10 11

As a share of M1

As a share of

household consumption

As a share of mainland GDP

Chart 1.1 Value of cash in circulation as a share of means of payment (M1), household consumption and mainland GDP. Percent. 2001 – 2011

Sources: Statistics Norway and Norges Bank

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0 5 10 15 20 25 30 35 40 45 50 55 UK

Sweden Norway Denmark Iceland Canada Switzerland Japan Euro area Singapore Hong Kong US

Sources: Norges Bank, ECB, BIS/CPSS and Central Bank of Iceland

Chart 1.2 Cash as a share of means of payment (M1) in selected countries.

Percent. 2010

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0.25 0.35 0.45 0.55 0.65 0.75

0 5 10 15 20 25 30

01 02 03 04 05 06 07 08 09 10 11

POS terminals (left-hand scale)

ATMs (right-hand scale) Chart 1.3 Number of point-of-sale (POS) terminals and ATMs.

Per thousand inhabitants. 2001 – 2011

Source: Norges Bank

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0 10 20 30 40 50 60

01 02 03 04 05 06 07 08 09 10 11

As a share of household consumption

As a share of mainland GDP

Chart 1.4 Value of goods purchases using payment cards. As a share of household consumption and mainland GDP. Percent. 2001 – 2011

Source: Norges Bank

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Chart 1.5 Number of card transactions per inhabitant. Payments and cash withdrawals.

2010¹

Sources: Norges Bank, ECB, BIS/CPSS and Central Bank of Iceland

0 50 100 150 200 250 300 350 400

Poland Germany Singapore Switzerland Ireland Belgium Netherlands UK Finland Denmark Sweden Canada US Norway Norway Iceland

2011

1) For Norway, numbers for 2011 are also included

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Chart 1.6 Use of payment cards. In billions of NOK.

2001 – 2011

Source: Norges Bank

0 100 200 300 400 500 600 700

01 02 03 04 05 06 07 08 09 10 11

Domestic credit cards International payment cards

BankAxept cards

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0 20 40 60 80 100 120 140 160 180 200 220 240

01 02 03 04 05 06 07 08 09 10 11

Online banking

Postal giro

Direct debit (AvtaleGiro)

Telegiro

Chart 1.7 Credit and direct debit transfers (retail customers). Millions of transactions.

2001 – 2011

Source: Norges Bank

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0 1 2 3 4 5 6 7 8

2006 2007 2008 2009 2010 2011

Other Standing orders

Cards Giros (electronic)

Giros (paper) Cheques

Chart 1.8 Banks’ income from payment services.

In billions of NOK. 2006 – 2011

Source: Norges Bank

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Source: Kripos (National Criminal Investigation Service)

Chart 1.9 Number of seized counterfeit notes.

2001 – 2011

0 500 1000 1500 2000 2500 3000 3500

01 02 03 04 05 06 07 08 09 10 11

NOK 1000 NOK 500 NOK 200 NOK 100 NOK 50

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Part two

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Chart 2.1 Daily average turnover in NICS.

0 50 100 150 200 250 300

01 02 03 04 05 06 07 08 09 10 11

NICS Net (earlier NICS retail clearing)

NICS SWIFT netting (phased out in June 2010) NICS Gross

Source: NICS Operations Office

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Chart 2.2 Disruptions in NICS operations. Number of errors and error points.

2001 – 2011

0 20 40 60 80 100 120 140 160

01 02 03 04 05 06 07 08 09 10 11

Number of error points

Number of errors

Source: NICS Operations Office

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0 50 100 150 200 250

01 02 03 04 05 06 07 08 09 10 11

NICS SWIFT

(phased out June 2010)

VPS and Oslo Clearing

NICS Net

Gross outside NICS

NICS Gross Chart 2.3 Average daily turnover in NBO by settlement.

Source: Norges Bank

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Chart 2.4 Banks’ total deposits and unutilised borrowing facilities at Norges Bank (end of day). In billions of NOK. 2011

Source: Norges Bank

0 50 100 150 200 250 300 350 400

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Unutilised borrowing facilities

Total deposits

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Chart 2.5 Banks’ total deposits at Norges Bank. Composition before and after the new liquidity management (quota-based) system 3 October. In billions of NOK. 2011

Source: Norges Bank

0 20 40 60 80 100 120

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Deposits (reserve rate)

Deposits (key rate) F-deposits

3 October

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Source: Norges Bank

Chart 2.6 Equities – trade and settlement in NOK at different marketplaces¹

1) The chart has been simplified for reasons of clarity

Oslo Børs

Oslo Clearing

Investment firms

Marketplace 3 Marketplace 2

CCP 3

Bank

Securities settlement system (VPO):

VPS / Norges Bank

(SOR)

CCP 2

Bank

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Chart 2.7 Number of transactions and value of turnover on Oslo Børs ¹⁾. Daily average. 2006 – 2011

0 10 20 30 40 50 60 70 80 90 100

06 07 08 09 10 11

Number of transactions (in thousands) Value of turnover (in billions of NOK)

Source: Oslo Børs 1) Equities

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Chart 2.8 Securities trading with central counterparty

Source: Norges Bank

Without central counterparty

Buyer

With central counterparty

Money Security

CCP

Money Money

Security Security

With several central counterparties

Money Money Money

Security

Seller

Buyer Seller

Buyer CCP 1 CCP 2 Seller

Security Security

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Chart 2.9 Value of daily NOK settlements in CLS, and pay-ins and payouts in NOK.

Monthly average. In billions of NOK. 2006 – 2011

Sources: CLS and Norges Bank

0 5 10 15 20 25 30 35 40 45

06 07 08 09 10 11

0 50 100 150 200 250 300 350 400 450

Settled (left-hand scale)

Pay-ins and payouts (right-hand scale)

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Boxes

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Source: Norges Bank

Chart 1 Interbank systems in Norway¹

1) The chart has been simplified for reasons of clarity. CCP = Central counterparty

Settlement in Norges Bank (NBO)

NICS

Direct participants:

Banks / Private settlement banks VPS

CLS

CCP (Oslo Clearing)

Indirect participants:

Banks

Clearing

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Chart 1 Value of payments directly affected by an operational problem¹⁾. In billions of NOK

Source: Norges Bank

1) Operational problem that lasts for 1 hour, 5 hours and all day. The 21 banks are sorted by value of payments not submitted.

0 50 100 150 200 250

1 . . . 21 1 . . . 21 1 . . . 21

1 hour 5 hours All day

Maximum value Average value

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Chart 2 Relative liquidity sink. Operational problem that lasts for 1 hour, 5 hours and all day¹⁾

Source: Norges Bank

1) The 21 banks are sorted by liquidity sink relative to total liquidity at beginning of day.

0.0 0.5 1.0 1.5

1 . . . 21 1 . . . 21 1 . . . 21

1 hour 5 hours All day

Maximum liquidity sink Average liquidity sink

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Source: Norges Bank

0 2 4 6 8

150 200 250 300 350 400

Expected delay (minutes)

Total liquidity (in billions of NOK)

1) The chart shows a significant reduction in expected delay as the liquidity in the system increases. Total liquidity below NOK 200 billion typically results in a delay of more than three minutes, while total liquidity above NOK 300 billion results in a delay of less than one minute.

Chart 3 Expected contagion (delay) for different levels of liquidity ¹⁾. Average value of transactions. In minutes

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Source: Norges Bank

End

06:29 07:29 08:29 09:29 10:29 11:29 12:29 13:29 14:29 15:29 16:29

Start

05:29 03:15 10:25 17:16 24:24 31:20 35:06 36:45 37:07 37:14 37:54 39:04

06:29 00:06 01:41 06:51 13:17 17:56 17:56 17:58 18:47 23:30 31:06

07:29 00:31 02:50 05:20 07:44 12:06 17:55 18:47 23:30 31:06

08:29 01:14 03:44 06:30 12:06 17:55 18:05 18:15 26:02

09:29 03:36 05:52 12:06 17:55 18:05 18:15 26:02

10:29 00:58 03:10 06:08 11:48 18:13 26:02

11:29 02:53 06:08 11:48 18:13 26:02

12:29 02:29 08:33 15:13 23:14

13:29 00:19 01:52 06:11

14:29 01:52 06:11

15:29 00:00

Chart 4 Maximum expected contagion (delay) for other banks by time and duration of the operational problem. In minutes