28 January 2011

Central Bank of Iceland payment intermediation

As was reported in the Central Bank of Iceland’s most recent Financial Stability report*, changes in core and support systems for Iceland’s payment intermediation services have been underway. That work has resulted, among other things, in the transfer of tasks between entities. The Central Bank of Iceland sold its stake in the Icelandic Banks’ Data Centre and simultaneously became the sole owner of Fjölgreiðslumiðlun hf. (FGM), whose name has been changed to Greiðsluveitan. The Icelandic Competition Authority has approved the new structure.

The operations of Greiðsluveitan will move to the Central Bank later this year. The company will handle new tasks in addition to those previously undertaken by FGM. Prior to the adoption of the new structure, FGM operated the netting system and the RÁS system, the joint payment channel for payment card transactions. In addition to these functions, Greiðsluveitan will operate the RTGS system, the SWIFT Alliance system, the collections system for electronic claims and remittance slips (payables pool), and the system that publishes electronic documents in online banking accounts (the check-free system).

Hosting and technical services for the above systems will be handled by the Icelandic Banks’ Data Centre, whereas Greiðsluveitan will provide services to the systems’ users and will take over the participation agreements that pertain. Financial undertakings that request participation and meet set requirements have access to these systems.

Contractual agreements between Greiðsluveitan and the Icelandic Banks’ Data Centre will be completed in coming weeks, and the agreements between Greiðsluveitan and the various system participants will be updated as well. In the near future, Greiðsluveitan will publish its business terms and conditions, which will specify, among other things, the requirements for system access and services, price lists, and other pertinent information.

The liaison personnel for the systems, such as those for the Central Bank of Iceland’s RTGS system, will remain the same.

Further information can be obtained from Logi Ragnarsson at Greiðsluveitan (tel: +354 458 0000) and Guðmundur Kr. Tómasson at the Financial Stability Department of the Central Bank of Iceland (tel: +354 569 9600).


* Financial Stability 2010/2, 25 November 2010 (pp. 21-22).

No. 5/2011
28 January 2011