BOE to revamp interbank payment system

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London—The Bank of England said on Friday it aimed to revamp the system that underpins British banking and trading in the City of London by 2020 to boost its defences against cyber-attacks and widen the number of businesses that can use it.
The BoE’s Real-Time Gross Settlement (RTGS) handles transactions worth around 500 billion pounds ($659 billion) a day – equivalent to almost a third of Britain’s annual economic output.
It suffered a major outage in October 2014, and in June BoE Governor Mark Carney said he wanted to make it easier for smaller firms to use the system directly rather than via large incumbent banks.
On Friday the BoE set out more detailed proposals and said it planned to fund the changes by temporarily increasing the charges banks pay to use the system.
“The world of payments is changing rapidly, and central banks need to keep pace if we are to deliver our mission of monetary and financial stability … whilst also enabling innovation.—AFP